Generate a 500-word article explaining the concept of opportunity cost and providing a practical framework for building an opportunity cost calculator. The article should define opportunity cost clearly, explaining its relevance to personal and business decision-making. It should then detail the key factors to consider when creating a calculator, including but not limited to: identifying potential investment options, estimating the potential returns of each option (both financial and non-financial), assigning probabilities to different outcomes, and incorporating time value of money. The article should include a hypothetical example demonstrating the calculator’s use, illustrating how it helps in choosing between competing opportunities. Finally, discuss limitations of any opportunity cost calculator and the importance of incorporating qualitative factors alongside quantitative calculations. The article should be written for a business audience with a basic understanding of finance but not necessarily expertise in advanced financial modeling.
Meta-Prompt: Generating an Opportunity Cost Calculator Article
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