p.96 of the Simplilearn manual, under the subject Opportunity Cost, states:
What is the opportunity cost of selecting project B if Project A has an NPV of $55 000, and project B has an NPV of $85 000.
Can anyone please explain to me the answer provided. It says,The answer is $55 000. This is the NPV of project A, which was selected over project B.
From the question, I understand the following:
1. Project B was selected, not project A
2. The answer should be the trade-off...
Opportunistic opportunity cost?
What is the opportunity cost of selecting project B if Project A has an NPV of $55 000, and project B has an NPV of $85 000.
Can anyone please explain to me the answer provided. It says,The answer is $55 000. This is the NPV of project A, which was selected over project B.
From the question, I understand the following:
1. Project B was selected, not project A
2. The answer should be the trade-off...
Opportunistic opportunity cost?