Opportunity Cost Example

Opportunity Cost Example - Example Project Number 1 2 3 4 5...

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Example Project Number Project Project Cost ($1000) Rate of Return 1 New equipment to reduce labor costs 150 30% 2 Other new equipment to reduce labor costs 50 45% 3 Overhaul machine to reduce material costs 50 38% 4 New test equipment to reduce defective parts 100 40% 5 Manufacture parts that previously had been purchased 200 35% 6 Further processing of parts previously sold in unfinished form 100 28% 7 Further processing of other products 200 18% 8 Relocate production to a new plant 250 25% 9 Invest in a different industry 300 20% 10 Another investment in a different industry 300 10% 11 Overseas investment 400 15%
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Sort by Rate of Return Project Number Project Project Cost ($1000) Rate of Return 1 Other new equipment to reduce labor costs 50 45% 3 New test equipment to reduce defective parts 100 40% 2 Overhaul machine to reduce material costs 50 38% 6 Manufacture parts that previously had been purchased 200 35% 5 New equipment to reduce labor costs 150 30% 4 Further processing of parts previously sold in unfinished form
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Opportunity Cost Example - Example Project Number 1 2 3 4 5...

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