I'm trying to understand the distinction between opportunity cost and capital cost. Could someone explain the key differences between these two concepts?
6 answers
Sat Jan 11 2025
Investors ascertain the cost of capital by evaluating their opportunity cost.
Sat Jan 11 2025
This opportunity cost refers to the value of the most favorable alternative investment.
Fri Jan 10 2025
The cost of capital serves as a benchmark for evaluating potential investments.
Fri Jan 10 2025
It encapsulates the expected return on investment, bridging the gap between present and future values.
Fri Jan 10 2025
The expected return incorporates various factors, such as risk and time horizon.