What is the opportunity cost in the pizza machine example? Option: The potential interest earned from a fixed deposit scheme, The cost of ingredients for making pizzas, The cost of maintaining the pizza machine, The cost of hiring an employee to operate the machine

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What is the opportunity cost in the pizza machine example?

The potential interest earned from a fixed deposit scheme

The cost of ingredients for making pizzas

The cost of maintaining the pizza machine

The cost of hiring an employee to operate the machine

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What does the Present Value of money help us understand?

"The value of future funds in today's terms"

"The impact of inflation on savings

"The future buying power of money"

"The potential return on investment"

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What is the key difference between the 'R' used in the Future Value formula and the 'R' used in the compound interest formula?

"Future Value 'R' represents opportunity cost, while compound interest 'R' represents growth rate."

"Future Value 'R' represents risk, while compound interest 'R' represents return."

"Future Value 'R' is a fixed rate, while compound interest 'R' can fluctuate.

"There is no difference, they represent the same concept."

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Which item does not cause any business risk?

Efficient management

Riot

Changing government policy

Breakdown of machinery

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What is the key factor considered when evaluating "Opportunity Size" for a potential investment?

"The company's price-to-earnings (P/E) ratio."

"The size and growth potential of the target market."

"The company's debt-to-equity ratio."

"The management team's experience and track record."

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What is the process of estimating the value of money we have today at some point in the future called?

Amortization

Depreciation

Compounding

Discounting