The opportunity cost of making an investment is:

Question

Quizplus · Accepted Answer

The opportunity cost of making an investment is the cost of forgoing a benefit from an alternative investment. This means that if you choose to invest in one opportunity, you are giving up the potential benefits of investing in another option. It is an important factor to consider when evaluating the potential returns of an investment and should be factored into the decision-making process. The other choices are incorrect: A is not true as opportunity cost is always relevant when making investment decisions, B is incorrect as the required discount rate is not necessarily the same as the opportunity cost, and D is incorrect as the initial cash outlay is just one component of the overall investment cost.

The Opportunity Cost of Making an Investment Is