You and some friends are meeting with city council members to ask them to build a skateboarding park that would cost $300,000. They ask you to identify the opportunity costs of
other recreation alternatives for teenagers. Identify two other alternatives for the city and discuss
how you could determine the opportunity cost of each.

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

The questions of economics address which of the following ? check all that apply