Following the last question -John is evaluating the idea to open an ice cream shop on a piece of land. The followings are what he might include in thecash flows:Instead, John can earn $120,000 if he decides to sell the land today.He bought this land for $350,000 two years ago.• Outfitting the space for an ice cream shop would require a capital expenditure of $150,000 today.It'll require an investment of $30,000 in inventories for making the ice creams today.What are the opportunity costs of opening the ice cream shop?1·.-$120,000O-$180,000O-$350,000O-$270,0004

Opportunity cost, a foundational economic concept, reflects the inherent trade-offs involved in…

Answered: Following the last question - John is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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am. 105.
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