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1. A recent college graduate has the choice of buying a new auto for $20,000 or investing the money for four years with a 6%

1. A recent college graduate has the choice of buying a new auto for $20,000 or investing the money for four years with a 6% expected annual rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is:

A) $1,200

B) $4,800

C) $20,000

D) zero since there is no opportunity cost for this decision

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