Determining opportunity cost of investment

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Reference no: EM1350277

The Hopedale Inn invested in a 10-acre plot of land for future development 20 years ago. It purchased this land for $100000 and it could be sold today for $500000. The Hopedale Inn's average and incremental tax rates are 22% and 30%, respectively. The Inn is considering building a new lodging facility on this land.

Q: What is the opportunity cost of this investment?

Reference no: EM1350277

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