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Lunna [17]
3 years ago
9

Nike decides to invest $60,000,000 into a shoe factory in Vietnam. What is the opportunity cost in this situation

Business
1 answer:
Sergeu [11.5K]3 years ago
3 0

Based on the payoff of the other investment alternatives, Nike's opportunity cost is<u> $600,000.</u>

<h3>What is Opportunity Cost?</h3>
  • It refers to benefits forgone when an alternative is picked instead of another alternative.
  • Is calculated as the payoff from the next best investment.

The next best investment was the $600,000 Nike was making per year on its money market account which makes this amount the opportunity cost of investing in Vietnam.

Find out more on opportunity cost at brainly.com/question/1549591.

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Explanation:

given data

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to find out

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we know that Book Value Per Share formula that is express as

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so from equation 1 put here value

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