Certification of Capability in Business Analysis (CCBA) — Question 73

An organization has two different solutions to grow its business. One project is worth $375,000 to the organization. The second project is worth $565,000 to the business. The organization can only do one of the projects and elects to do the second project for $565,000. What is the opportunity cost of this decision?

Answer options

Correct answer: C

Explanation

The opportunity cost of choosing the second project is the value of the first project that is foregone, which amounts to $375,000. The other options represent either the value of the chosen project or incorrect calculations, making them unsuitable as answers.