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Opportunity cost of investing in the house

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Reference no: EM131100647

Dan is an entrepreneur who invests in commercial and residential real estate. He has a savings account with $100,000 that earns 1% APY. Dan wants to buy a house that will give him a monthly cash inflow of $200. What will be the opportunity cost of investing in the house?

A. $1,000
B. $1,200
C. $800
D. $200

Reference no: EM131100647

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