Based on the payoff of the other investment alternatives, Nike's opportunity cost is $600,000.
What is Opportunity Cost?
- It refers to benefits forgone when an alternative is picked instead of another alternative.
- Is calculated as the payoff from the next best investment.
The next best investment was the $600,000 Nike was making per year on its money market account which makes this amount the opportunity cost of investing in Vietnam.
Find out more on opportunity cost at https://brainly.com/question/1549591.
