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:

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The act of being among the first to explore, develop, or adopt new techniques, areas of knowledge, or technology.

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Pertaining to data, facts, or details that provide knowledge or insight.