The opportunity cost on a specific investment is the
A) projected future value of the investment.
B) present value of that investment.
C) value of the assets used for capital for that investment.
D) rate of return that could be earned on a similar investment.

Question

Quizplus · Accepted Answer

The opportunity cost on a specific investment is the rate of return that could be earned on a similar investment. It represents the potential gain that is foregone by choosing one investment option over another. Therefore, the most relevant choice is D, which represents the potential return on a similar investment that could have been chosen instead.

The Opportunity Cost on a Specific Investment Is the