If required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be
A. $6.20
B. $7.20
C. $4.20
D. $5.20
Answer: Option C
Solution(By Examveda Team)
Relevant opportunity cost of capital = Cost of units purchased × Rate of return= $35 × 12% = $4.20
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