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Time Value of Money for Opportunity Cost Rates

What is an opportunity cost rate, is it used in the discounted cash flow analysis, should I show it on my time line and where, and finally is this thing a single number or does it change and if so why?

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As implied by the name, an opportunity cost rate is the rate of return on an alternative investment with a similar risk as the project/investment being considered. For example, an investment in a car ...

Solution Summary

The solution determines the time value of money for opportunity cost rates and discounted cash flow analysis.