Calculate opportunity cost for investment decisions and resource allocation. Compare alternatives, analyze foregone returns, and make informed financial choices with comprehensive decision analysis.
Amount invested in chosen option
Annual expected return rate
Investment time horizon
Amount for alternative option
Annual expected return rate
Name of alternative investment
Cost of foregone alternatives
Opportunity cost represents the value of the next best alternative that must be given up when making a choice. It's a fundamental economic concept that helps in making rational decisions by considering what you sacrifice.
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