Carter Co. paid $1,000,000 for land three years ago. Carter estimates it can sell the land…

Carter Co. paid $1,000,000 for land three years ago. Carter estimates it can sell the land…

Carter Co. paid $1,000,000 for land three years ago. Carter estimates it can sell the land for$1,200,000, net of selling costs. If the land is not sold, Carter plans to develop the land at a cost of $1,500,000. Carter estimates net cash ? ow from the development in the ?rst year of operations would be $500,000. What is Carter ’ s opportunity cost of the development? a. $1,500,000b. $1,200,000c. $1,000,000d. $500,000

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