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    Opportunity cost of investment

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    The Hopedale Inn invested in a 10-acre plot of land for future development 20 years ago. It purchased this land for $100000 and it could be sold today for $500000. The Hopedale Inn's average and incremental tax rates are 22% and 30%, respectively. The Inn is considering building a new lodging facility on this land.

    Q: What is the opportunity cost of this investment?

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    https://brainmass.com/business/management-accounting/opportunity-cost-of-investment-134136

    Solution Preview

    The Hopedale Inn invested in a 10-acre plot of land for future development 20 years ago. It purchased this land for $100000 and it could be sold today for $500000. The Hopedale Inn's average and incremental tax rates are 22% and 30%, respectively. The Inn is ...

    Solution Summary

    Calculates opportunity cost of investment.

    $2.19

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