• Suppose that your values for the three projects, not including the upfront $1,500,000 investment cost, are: 
• Project A = $500,000; 
• Project B =$750,000 and 
• Project C = $900,000. 
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• What are the explicit (actual) and implicit (net value of best alternative, or "opportunity") costs for each of the three projects?
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• Which one should you invest in to maximize your returns? Think carefully, and assume that we live in a free society where you don't have to do anything you don't want to.

Answer rating: 100% (QA)

SOLUTION To determine the explicit and implicit costs for each project we need to consider the oppor... View the full answer