Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,341 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case? ... O A. 10% О в. 11% Ос. 9% O D. 6%

Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,341 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case? ... O A. 10% О в. 11% Ос. 9% O D. 6%

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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