The opportunity cost of a resource should be considered in project analysis, unless:
A) negative 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

Opportunity cost is the value of the next best alternative foregone. If a resource has no identifiable market value, it implies there is no alternative use or value, hence no opportunity cost.

The Opportunity Cost of a Resource Should Be Considered in Project