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Passa Caglia Passa Caglia
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When comparing internal and external financing, what is the value of the most appealing alternative from among those that were not chosen?

▸ Rate of return

▸ Leverage

▸ Capital structure

▸ Opportunity cost

▸ Factoring
Textbook 

Business in Action


Edition: 9th
Authors:
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hhortonhhorton
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Opportunity cost

Internal financing is not free; using money for any particular purpose has an opportunity cost, defined as the value of the most appealing alternative from among those that weren't chosen.

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