If the Going Rate of Interest Were 8 Percent and the Expected

question 239

Multiple Choice

If the going rate of interest were 8 percent and the expected profit rate were 14 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)$6,000.
• C)$8,000.
• D)$14,000.

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