A 5-year project requires an additional commitment of $100,000 in net working capital. What is the opportunity cost associated with this investment?
A) $100,000
B) The present value of $100,000 discounted at the firm's cost of capital for 5 years
C) The present value of $100,000 discounted at the firm's cost of capital for 5 years minus $100,000
D)No opportunity cost is involved.

Question

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The Answer of A 5-year project requires an additional commitment of $100,000 in net working capital. What is the opportunity cost associated with this investment?
A) $100,000
B) The present value of $100,000 discounted at the firm's cost of capital for 5 years
C) The present value of $100,000 discounted at the firm's cost of capital for 5 years minus $100,000
D)No opportunity cost is involved.

A 5-Year Project Requires an Additional Commitment of $100,000 in Net