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opportunity cost vs cost of capital

cost of capital vs opportunity cost

opportunity cost and cost of capital both are nouns.

Word NounAdjectiveVerbAdverb
opportunity cost Yes No No No
cost of capital Yes No No No
As nouns, cost of capital is a hyponym of opportunity cost; that is, cost of capital is a word with a more specific, narrower meaning than opportunity cost:
  • opportunity cost: cost in terms of forgoing alternatives
  • cost of capital: the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk
Other hyponyms of opportunity cost include capital cost, carrying charge, carrying cost.
opportunity cost (noun) cost of capital (noun)
cost in terms of forgoing alternatives the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk
Difference between opportunity cost and cost of capital

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