Opportunity expense refers to a benefit that a particular person could have received, but gave up, to take one more course of action. For the sake of simplicity, assume the investment merely yields a return of %, which means the business gets out specifically what it put in. The actual opportunity expense of choosing this option is 10% – %, or ten%. Assume the business in the above example decides to forgo new equipment and invests in the stock market instead. Choice A in the above example is to invest in the stock market place in hopes of generating returns.