A Recent College Graduate Has the Choice of Buying a New

question 29

Multiple Choice

A recent college graduate has the choice of buying a new car for $33,500 or investing the money for four years with an 8% expected annual rate of return.He has an investment of $40,000 in equities and bonds which yields 6% expected annual rate of return.If the graduate decides to purchase the car,the best estimate of the opportunity cost of that decision is ________.

• A) $2,400
• B) $10,720
• C) $40,000
• D) $9,600

Define the concept and importance of set-up time in production.

Identify the limitations of traditional accounting systems in performance measurement.

Acknowledge non-financial measures as predictors of future financial performance.

Understand the "cascade down" requirement in the balanced scorecard.