Consider a firm making a decision to purchase a unit of capital - let's say,a forklift.In terms of capital markets,which of the following would we consider to be the opportunity cost of the forklift ?
A) the additional revenue to the firm that the forklift would generate in the future
B) the resale value of the forklift after one year
C) the future stream of MRPs from the forklift
D) the interest the firm could earn by purchasing a bond instead
E) the purchase price of the forklift
Correct Answer:
Verified
Q1: The Canadian government introduced the Tax- Free
Q4: The law of diminishing marginal returns tells
Q5: How much would you have to deposit
Q6: FIGURE 15- 2
-Refer to Figure 15- 2.The
Q7: In a competitive market for capital equipment,the
Q8: If the annual interest rate is 10%,the
Q9: An economy's upward- sloping supply curve of
Q10: The diagram below shows the market for
Q11: Economists use the concept of present value
Q18: If the annual interest rate is 6%,the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents