The most valuable investment given up if an alternative investment is chosen is referred to as a(n):
A)salvage value expense.
B)net working capital expense.
C)sunk cost.
D)opportunity cost.
E)erosion cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the best alternative forgone when an alternative investment is chosen. It represents the most valuable investment given up and helps in making effective investment decisions. Therefore, option D is the correct answer. Options A, B, C, and E do not accurately describe the concept of opportunity cost.

The Most Valuable Investment Given Up If an Alternative Investment