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Describe an investment decision you or your company has made. Compute the opportunity costs and benefits of the decision. Did your company make the right decision

User Cuckovic
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Answer:

See below

Step-by-step explanation:

The investment decision I made was to put my money in money market - Mutual funds. Although the rate varies, yet I decided to investment in it due to the security attached to this kind of investment and the guaranteed returns.

The opportunity cost is that I gave up investing my funds in a fixed deposit instead, opt for investing in mutual funds. Here, the opportunity cost is the fixed deposit investment and the returns therein. The benefit of mutual fund investment is that I would be entitled to a quarterly interest(earned) as specified in my initial application.

I did make the right decision in that at least I am entitled to a quarterly interest even though I would also get interest if the fund was invested in fixed deposit but the interest due to me in my mutual funds investment is a little higher than the fixed deposit.

User Artemnih
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