The opportunity cost of a resource should be considered in project analysis, unless:
A)No cash flows result from its use
B)The resource was purchased in a prior time period
C)The resource has been fully depreciated
D)The resource has no identifiable market value

Question

Quizplus · Accepted Answer

The opportunity cost is relevant when a resource has an alternative use or market value. If a resource has no identifiable market value, it implies there is no alternative use or opportunity cost associated with it.

The Opportunity Cost of a Resource Should Be Considered in Project