What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is a single number used in all situations? Explain

Opportunity cost is benefit foregone. In the topic of time value of money, the benefit foregone is the rate of return of similar alternative investments. This concept is used to help make wise decisions in choosing investments of different prices and rate of returns. The rate of return is shown in the top, middle or beginning of the timeline, wherever it is easy to spot. A single number may or may not be used in all situations, since rates of return may vary.