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Find the best estimate of the opportunity cost

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Reference no: EM132777335

Question - A recent college graduate has the choice of buying a new car for $38,500 or investing the money for three years with an 9% expected annual rate of return. He has an investment of $40,000 in equities and bonds which yields 10% expected annual rate of return. If the graduate decides to purchase the car, find the best estimate of the opportunity cost of that decision?

Reference no: EM132777335

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