If the Going Rate of Interest Were 10 Percent and the Expected

question 22

Multiple Choice

If the going rate of interest were 10 percent and the expected profit rate were 18 percent,then the opportunity cost of a firm carrying out a $100,000 project for one year with its own funds would be

• A)0.
• B)$8,000.
• C)$10,000.
• D)$18,000.

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Definitions:

Market Prices

The current price at which an asset or service can be bought or sold in a particular marketplace.

Formative Evaluation

An evaluative process conducted during the development of a program or project to improve its design and performance through ongoing feedback.

Measurement

The process of obtaining the size, quantity, or degree of something using standard units.

Outcome Objectives

Specific goals that a project or study aims to achieve, measured through certain indicators or outcomes.