John is evaluating the idea to open an ice cream shop on a piece of land....

 

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John is evaluating the idea to open an ice cream shop on a piece of land. The followings are what he might include in the cash flows: . Instead, John can earn $120,000 if he decides to sell the land today. He bought this land for $350,000 two years ago. Outfitting the space for an ice cream shop would require a capital expenditure of $150,000 today. . It'll require an investment of $30,000 in inventories for making the ice creams today. What are the opportunity costs of opening the ice cream shop? John is evaluating the idea to open an ice cream shop on a piece of land. The followings are what he might include in the cash flows: . Instead, John can earn $120,000 if he decides to sell the land today. He bought this land for $350,000 two years ago. Outfitting the space for an ice cream shop would require a capital expenditure of $150,000 today. . It'll require an investment of $30,000 in inventories for making the ice creams today. What are the opportunity costs of opening the ice cream shop?

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Opportunity cost is the benefit that is missed out on when choosing one alternative over another In ... View the full answer