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Business opening hours
a) Opportunity cost refers to the cost of the next best alternative that is foregone in a decision. In this case, it refers to the loss income by not opening supermarkets on Weekends.
b) Illustration of opportunity cost mentioned include
These factors will obviously affect commerce decision making, e.g. whether to do business on Sundays or 24-hour a day.
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b) Based on these figures, Project Detroit should be pursued as it has the superior NPV. Even though both projects yield the same absolute amount of net cash flow (each totalling $
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