Her annual opportunity cost of this new business is:

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Answer question 5
QUESTION 5
Sarah earns £60,000 per year working for a multinational companny. She is thinking of quitting this job to work full time in her bakery
shop. She will invest her savings of £100,000 (which currently has an annual 2% rate of return) into the business. She will also use her
property which is currently giving her monthly rental of £1,000. Her annual opportunity cost of this new business is:
O A. £161,000
O B. £6,166
OC. £74,000
O D.£100,000
Transcribed Image Text:QUESTION 5 Sarah earns £60,000 per year working for a multinational companny. She is thinking of quitting this job to work full time in her bakery shop. She will invest her savings of £100,000 (which currently has an annual 2% rate of return) into the business. She will also use her property which is currently giving her monthly rental of £1,000. Her annual opportunity cost of this new business is: O A. £161,000 O B. £6,166 OC. £74,000 O D.£100,000
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