Opportunity cost

2010-11-20 10:42 pm

請解答一下這條FINANCE問題:

If ABC Company purchases a new machine for producing blu-ray disc, it needs to find a place to install the machine. The company has a warehouse that can be rented out for a rental income of $50,000 per month but it has been vacant for many years and the company has no intention to rent out the warehouse or for other purposes, so the financial manager proposes that the company can install the new machine in the warehouse for producing blu-ray disc.

Question: Should the financial manager consider the rental income of $50,000 per month as opportunity cost when calculating the NPV?

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回答 (1)

Acct

2010-11-21 5:28 am

✔ 最佳答案

The financial manager should consider the rental income of $50,000 per month as opportunity cost when calculating the NPV as the warehouse can earn rental income if not for production of blu-ray.

2010-11-22 18:09:14 補充：
Yes. As it forego the usage of warehouse.

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