The opportunity cost is defined as the weighted average cost of capital incurred by a business in order to finance the purchase of its non-current assets.

Name: The opportunity cost is defined as the weighted average cost of capital incurred by a business in order to finance the purchase of its non-current assets.
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Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefit a person or business misses out on when choosing one alternative over another, not the cost of capital for financing asset purchases.

The Opportunity Cost Is Defined as the Weighted Average Cost