The opportunity cost associated with the firm's capital investment in a project is called its:

A) Cost of capital.
B) Beta coefficient.
C) Capital gains yield.
D) Sunk cost.
E) Internal rate of return.

Opportunity Cost

The sacrifice of potential gains that could have been obtained from unchosen options.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Beta Coefficient

Amount of systematic risk present in a particular risky asset relative to an average risky asset.