Use of an unused idle asset as part of a project represents an option, not an...
Use of an unused idle asset as part of a project represents an option, not an opportunity cost - True or False?
Homework Answers
Yes Very true in regards to the use of unused Idle assets which kept idle for longer which has not created a value in the current process, however the idle assets is better option rather taking extra amount of money to invest in the particular project for the same thing which is already existed with you.
Opportunity Cost is something where if you are investing in the current project by sacrificing the return available with other investment opportunity is the opportunity cost of the current investment.
In short while we are investing in project ABC by neglecting with returns from the Project XYZ are the opportunity cost for not investing in project XYZ.
Here unused idle assets gives the option to the project manager to put the same amount of money in the project for advancement and expansion by not bringing the new assets inplace of the unused one.
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