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Elainea Jennings 7 May 11 2:24 PM MST Class and Professor, Opportunity Costs are potential benefit that is forgone because one course of action is chosen over another. The reason that they are often difficult to analyze in decision making is because they are not included in the accounting records. Hi Elainea, For a financial goal, the return is a key factor in making the decision. If a person invests in
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Unformatted text preview: a very high return investment, usually the risks will be higher. The opportunity cost is clear; one investment provides a high return, but there is an associated big risk. The second investment pays a lower return, but also has a lower risk. Opportunity cost requires a person to weigh up the benefits of both. If a person chooses one, they lose the opportunity to invest in the other. Good post. Jack...
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