Many business decisions take into consideration opportunity costs. Opportunity costs are the value forgone by choosing one strategy over another, and need to be carefully evaluated to ensure that the benefit surpasses the sacrifice. For example, review The Time Value of Money Data Case. In debating whether to use her inheritance to pay for obtaining certification in network design versus pursuing an MBA, Natasha had several things to consider.
Write a 300-word response to the following question(s)/prompt(s), include at least one APA-formatted citation/reference to a source from this lesson.
Respond to the questions:
If you think about the opportunity cost of going to college, i.e., considering the money you would have earned by continuing to work instead of going to college, how do you think your time would be most profitably spent? In simple terms, calculate the time value of money in this real-life situation.
What intrinsic values are worth considering when evaluating opportunity cost?
The Time Value of Money Data Case