Opportunity Costs
Response to the following problem:
Clark is employed by a company that currently pays him $90,000 per year. He owns a new car that he bought for cash of $39,000. Clark is thinking about returning to school to obtain a law degree. Tuition for the school he wants to attend is $29,000 per year, books cost an average $1,400 per year, and room and board is $17,980 per year.
Determine the total sunk cost and the total opportunity cost for Clark if he decides to go back to law school for three years.