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At this moment in Australia there are job crises, which affect you. You are thinking about delivering food in your spare time. Since you must use your own car to deliver the food, you will wear out your current car 1 year earlier, which is 1 year from today, than if you did not take on the delivery job. You estimate that when you purchase a new car, regardless of when that occurs, you will pay $30,000 for the car and it will last you 5 years.
Question 1: If your opportunity cost of capital is 8 percent, what is the opportunity cost of using your car to deliver food?
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