An opening is an opportunity affording a excellent possibility of success: She waited patiently for her opening, then proved she was ready to lead the group. Opportunity cost evaluation also plays a critical role in determining a business’s capital structure When both debt and equity require some degree of expense to compensate lenders and shareholders for the threat of investment, every single also carries an opportunity expense. The opportunity cost of picking out the equipment more than the stock marketplace is 12% – ten%, or two%. In this case, its virtue is to remind us that the cost of using a resource arises from the worth of what it could be employed for instead.
Posted on April 10, 2017, By Carl Donovan
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