A recent college graduate from Clayton State University has the
choice of buying a new car for $33,500 or investing the money for
four years with an 11% expected annual rate of return. He has an
investment of $41,000 in equities and bonds which yields 8%
expected annual rate of return. If the graduate decides to purchase
the car, the best estimate of the opportunity cost of that decision
is ________.
Question 2 options:
$3,280
$18,040
$14,740
$41,000