Total opportunity cost of the new motorcycle model is calculated as: average inventory of materials, work in process and finished motorcycles - $2,500,000; payments for labor, promotion and administration - $750,000; the market rate of interest for this investment is 10%.

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Multiple Choice

Total opportunity cost of the new motorcycle model is calculated as: average inventory of materials, work in process and finished motorcycles - $2,500,000; payments for labor, promotion and administration - $750,000; the market rate of interest for this investment is 10%.

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