Farris Company is considering a cash outlay of $500,000 for the purchase of land, which...
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Accounting
Farris Company is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available that yield a 15% return, the opportunity cost of the purchase of the land is
a.$7,500
b.$75,000
c.$44,000
d.$40,000
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