Opportunity cost is best defined as the value of
a. all of the other possible options that the decision maker could have chosen.
b. the alternative which the decision maker would choose if more resources were available.
c. what is gained from the alternative which is chosen.
d. resources that are given up to obtain the alternative that is chosen.
e. the next best alternative that the decision forces one to give up.
e
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Since 1982, banks and thrift institutions have offered a type of savings account that yields a market rate of interest with a minimum balance and a limit on transactions. These accounts, which have no minimum maturity, are known as
A) money market mutual funds. B) repurchase agreements. C) certificates of deposit. D) mutual funds.
Net present value and internal rate of return capital budgeting decisions can differ because
A) the initial costs of the capital outlays differ. B) the cash flow streams differ. C) the discount rates differ for different time periods. D) All of the above