FIN 301 – What is an opportunity cost rate
FIN 301 – What is an opportunity cost rate
Subject: Business   / Finance
Question
Read the discussion questions posted below, and select one, then post a comment of at least 200 words.
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What is anopportunity cost rate? How is this rate used in time value analysis, and where is it shown on a cash flow time line? Is the opportunity rate a single number that is used in all situations?
Read the discussion question posted below, then post a comment of at least 200 words.
How are the simple rate, the periodic rate, and the effective annual rate related? Can you think of a situation where all three of these rates will be the same?