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OMI is planning to build a new branch on land it already owns. The land was purchased several years ago for $250,000. Recently, OMI was offered $ 350,000 for the land. OMI estimates that if they build the branch, it will create NPV = $400,000. OMI did not consider the valued in this NPV calculations. Given this information, what is the opportunity cost to OMI of building the proposed branch?
Answers:
a. $400,00
b. $50,000
c. $350,000
d. $100,000
e. $250,000

Answer :

AmishaSrivastavago

The opportunity cost to OMI of building the proposed branch is $50,000.

What is opportunity ?

  • A business opportunity, also called a bizop, is the opportunity to take advantage of  market events to start a business.
  • It is a kind of favorable condition that exists in the market.
  • Depending on the business opportunity, some businesses will succeed and others will fail.
  • Opportunities are doors or opportunities to something positive, but you must claim it for yourself! there is.
  • They may arise from  developments in the markets you serve or  the technologies you use.
  • Opportunity is usually defined as a situation in which a product or service can be sold at a price higher than the cost of manufacturing it.
  • A “business opportunity” is therefore a situation in which an entrepreneur can take action to make a profit.

To learn more about opportunity  from the given link :

https://brainly.com/question/29341508

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