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How to calculate opportunity cost ?

Image attached to the doubt: How to calculate opportunity cost ?

Asked by AK7 Feb 2025412 views

3 answers

  1. Mansi · 9 Feb 2025

    Do you have any further doubts let me know

  2. AK · 9 Feb 2025

    Thanks

  3. Mansi · 9 Feb 2025

    1. Old Investment in Receivables= 12,00,000*30/360 = 1,00,000 2. New Investment in Receivables = 12,00,000*20/360= 66,667 3. Change in Investment in Receivables 66,667 - 1,00,000 = -33,333 4. Opportunity Cost -33,333* 15% = -5,000 Conclusion: The opportunity cost is negative (-₹5,000), means the company will save ₹5,000 due to the reduction in receivables investment.

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