Opportunity Cost

Submitted by elthox on Fri, 07/19/2013 - 16:21

 

Which of the following projects described below will you select? 
 
 
  Choice 1 Project A with opportunity cost of $ 100,000 and investment of $ 1,000,000.
 
  Choice 2 Project B with opportunity cost of $ 200,000 and investment of $ 500,000.
 
  Choice 3 Project C with opportunity cost of $ 300,000 and investment of $ 3,500,000.
 
  Choice 4 Cannot be determined from the above options.
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vikula01

Fri, 07/19/2013 - 16:25

We don't know anything else apart from investment - so based on opportunity cost I will go with choice 1 - the one with less OC .

pmpnewster

Fri, 07/19/2013 - 16:30

 

Choice 4.

 

Regards.

 

cnppmp1's picture

cnppmp1

Sat, 07/20/2013 - 10:16

always low opportunity cost to be selected..and it is A, which has $100,000


Regards


CN Patil

ppalkonda1975

Sun, 07/21/2013 - 00:27

 choice 4 as enough info is not present

vmetha

Sun, 07/21/2013 - 02:15

Project are selected based on investment. Opportunity cost is project cost that you give up and it just project $ value you won't be doing. Project selection is based on the factors of investment, which is not clear here so would go for option 4.  

elthox

Sun, 07/21/2013 - 14:52

As per test authors Correct answer was 4