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"quantity"exercise: An opportunity cost

来源: 正保会计网校 编辑:小鞠橘桔2020/10/26 09:26:30 字体:

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Questions 1:

Once an investor chooses a particular course of action, the value forgone from alternative actions is best described as a(n):

A 、sunk cost.

B、 required return.

C 、opportunity cost.

Questions 2:

An investor deposits £2,000 into an account that pays 6% per annum compounded continuously. The value of the account at the end of four years is closest to:

A 、£2,854.

B 、£2,525.

C 、£2,542.

View answer resolution
【Answer to question 1】C

【analysis】

C is correct. An opportunity cost is the value that investors forgo by choosing a particular course of action.

A is incorrect. A sunk cost is one that has already been incurred and therefore cannot be changed

B is incorrect. The required return is the minimum rate of return an investor must receive in order to accept the investment.

【Answer to question 2】C

【analysis】

quantity exercise: An opportunity cost

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