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You are asked to invest $1000 in a friend's business with the promise that the friend will repay $1200 in one year's time. Your alternative
You are asked to invest $1000 in a friend's business with the promise that the friend will repay $1200 in one year's time. Your alternative investment opportunity in the market pays a 30% return in one year's time and the money market fund offers a rate of return of 8%. What is the opportunity cost of capital in this case? O A. 0.2 or 20% OB. 0.38 or 38% O C. 0.08 or 8% O D. 0.30 or 30%
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