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A business is preparing to invest $2,500,000 for the purchase of a building, which it intends to lease to a third party for $200,000 per
A business is preparing to invest $2,500,000 for the purchase of a building, which it intends to lease to a third party for $200,000 per year. If an alternative investment is available that yields a 6% annual return, the opportunity cost of the building purchase is:
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$200,000
$150,000
$2,500,000
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