NPV & Opportunity Cost

Submitted by freefishc88 on Sat, 04/07/2012 - 00:55

NPV value for Project A $500,000, Project B $300,000, and Project C is $450,000. What is the opportunity cost?

So the opportunity cost is

1.  $300,000?

or

2. $300,000 + $450,000?

 

Thanks.




 

Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 820 reads

krantikumar50

Sat, 04/07/2012 - 03:51

I think the question is not complete. Opportunity cost is for the project taken v/s the project not taken. So, here if you choose Project A, then the opportunity cost would be what not taken vis-a-vis what taken. Thanks, KK...