CMA Study Group

2D2-LS01 According to the time value of money, all of the following statements about a $100,000 equipment investment with the potential for an 8% return are true except:   The opportunity cost is the $8,000 foregone if the investment is not made.   Funds for additional capital investment may be required to meet the 8% return.   The anticipated effects of inflation must be taken into account.   The investment will be worth $108,000 at the end of the year. I can't determine the correct answer because I think all of options are correct , please help me in this case ------------------------------ Mohamed Ahmed Abdel Mettal Accountant Oshena Alexandria Egypt ------------------------------

Can any body help us to resolve this problem, i know the correct answer but i can't understand why?

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Mohamed Atif
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Original Message:
Sent: 02-09-2015 01:45 AM
From: Mohamed Ahmed Abdel Mettal
Subject: time value of money


2D2-LS01

According to the time value of money, all of the following statements about a $100,000 equipment investment with the potential for an 8% return are true except:

 

The opportunity cost is the $8,000 foregone if the investment is not made.

 

Funds for additional capital investment may be required to meet the 8% return.

 

The anticipated effects of inflation must be taken into account.

 

The investment will be worth $108,000 at the end of the year.

I can't determine the correct answer because I think all of options are correct , please help me in this case
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Mohamed Ahmed Abdel Mettal
Accountant
Oshena
Alexandria
Egypt
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