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Dan Is an Entrepreneur Who Invests in Commercial and Residential

Question 3

Multiple Choice

Dan is an entrepreneur who invests in commercial and residential real estate.He has a savings account with $100,000 that earns an annual percentage yield of 1%.Dan wants to buy a house that will give him a monthly cash inflow of $200.What will be the opportunity cost of investing in the house?


A) $1,200
B) $1,000
C) $800
D) $200

Correct Answer:

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