Scenario 13-2 Chelsea Wants to Start Her Own Christmas Ornament Business. She

question 10

Multiple Choice

Scenario 13-2
Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that costs $100,000. Chelsea currently has $150,000 in the bank earning 3 percent interest per year.
-Refer to Scenario 13-2. Suppose Chelsea purchases the factory using $50,000 of her own money and $50,000 borrowed from a bank at an interest rate of 6 percent. What is Chelsea's annual opportunity cost of purchasing the factory?

• A)$2,000
• B)$3,000
• C)$4,500
• D)$5,000

---

Definitions:

Research Design

The overall strategy that a researcher chooses to integrate the different components of the study in a coherent and logical way, ensuring effective addressing of the research problem.

Conceptual Framework

An analytical tool that outlines the key variables, their relationships, and the theoretical principles guiding a research study.

Operationally Defining

Clearly specifying the procedure or method by which a variable, concept, or term is measured or defined in the context of a study.

Statistical Tools

Computational or mathematical methods and procedures used to analyze, interpret, and present data.