opportunity cost(redirected from Opportunity cost of capital)
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The net value or utility of the most desirable alternative to a projected course of action.
(Economics) economics the benefit that could have been gained from an alternative use of the same resource
The benefit that is sacrificed by choosing one course of action rather than the next best alternative, e.g. the opportunity cost sacrificed in building a road might be use of the land for farming.
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|Noun||1.||opportunity cost - cost in terms of foregoing alternatives|
cost - the total spent for goods or services including money and time and labor
capital cost, cost of capital - the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk