Question

choose either a personal decision or business decision and explain both the quantitative and qualitative factors involved. Do not give actual dollar amounts—just relate in general terms. Explain the process by which you made the decision. Did it mirror the decision-making process from your textbook? If not, what was different? What was the opportunity cost of the decision? Did qualitative factors outweigh quantitative ones? Which factors, if they had changed, would have resulted in a different decision?

Answer 1

Opportunity values ​​are usually taken into account when two or more options are available. Replacement costs, which may be both quantitative and qualitative, must be taken into account.

For example, if we have to decide between two options for buying a home with a limited loan or getting a rental, then we will look at different amounts, such as rent over rent, registration fees for new home, more expensive Sign up for the cost of a new home New property. Etc.

In addition to the above factors, there may be a number of non-financial (quality) factors that can be considered proud of a home equity loan, in a good location, and not available for long-term leasing.

The available options will be higher if we go for a property, but I can still decide to buy this property because I will never get a house like this in a good location.