You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a frien
d about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game?
The correct answer is letter "D": The football game you forego by watching the movie again.
Explanation:
Opportunity cost is what a person sacrifices when they choose one option over another. Opportunity cost is calculated by subtracting the return of the forgone option from the return of the chosen option. The result represents what was left on the table. Sometimes the chosen option can provide better returns than the forgone option and vice-versa.
In that case, the opportunity cost of watching "<em>The Dark Knight Rises</em>" one more time with a friend is the <em>football game </em>left behind.
The note must be reported on the balance sheet as of December 31 for the total outstanding value, since the refinancing does not change the value to be paid only affects the terms and interests, also the financing will only be made in January of year 2
