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A person has an opportunity to earn 10% return from the various alternative investments available for her to choose from. If he decides to invest in another project, he loses on an opportunity to earn 10% rate of return from the existing investment. Therefore, the return forgone for the undertaking an investment is known as opportunity cost of capital.
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P started a business investing Rs.10000. After 5 months, Q joined her with the capital of Rs.20000. After another 3 months, R joined them with the capit...
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A, B, and C started a partnership with initial investments of Rs. 17,200, Rs. 25,800, and Rs. 32,250, respectively. After 20 months, C completely withdr...
