Lara Technologies Is Considering a Cash Outlay of $250,000 for the Purchase

question 105

Multiple Choice

Lara Technologies is considering a cash outlay of $250,000 for the purchase of land,which it could lease out for $35,000 per year.If alternative investments are available that yield a 12% return,the opportunity cost of the purchase of the land is

• A) $35,000
• B) $30,000
• C) $250,000
• D) $4,200

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Definitions:

Number Facility

The ability to easily understand numbers and mathematical concepts, including performing mathematical operations.

Arithmetic Operations

Basic mathematical procedures including addition, subtraction, multiplication, and division, fundamental for quantitative reasoning.

Syllogistic Reasoning

Reasoning with problems concerning relationships among categories (e.g., “All A are B; some B are C; therefore, some A are C”).

Intrapersonal Intelligence

The capacity to understand oneself, including one's emotions, motivations, inner states, and self-reflection.