What is the opportunity cost of using an existing asset? Give an example of the opportunity cost

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What is the opportunity cost of using an existing asset? Give an example of the opportunity cost of using the excess capacity of a machine.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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