1. You are assisting your portfolio manager in making a decision about which of two possible projects should be given approval to proceed. Project A would generate $75,000 in benefit. Project B would generate $225,000 in benefit. Unfortunately, due to limited resources, your company can only perform one project, and they choose Project B because of the higher benefit. What is the opportunity cost of performing Project B? A: $225,000 B: $75,000 C: $300,000 D: $150,000
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