ohn invested $12,000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached S125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold and the proceeds invested in another investment, they would likely eam 5% per annum. Which of the following terms and values is correct? $125,000 is the opportunity cost of selling the shares today $12,000 is a sunk cost $250,000 is the opportunity cost $2000 is the opportunity cost None of the above

ohn invested $12,000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached S125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold and the proceeds invested in another investment, they would likely eam 5% per annum. Which of the following terms and values is correct? $125,000 is the opportunity cost of selling the shares today $12,000 is a sunk cost $250,000 is the opportunity cost $2000 is the opportunity cost None of the above

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 2P

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