Most people do not understand that each set of alternatives to any action will cost some price. The important thing to know is how to value the cost. Companies know what it cost them to borrow and also what they can earn on invested funds. The question is what should be used as the value of their alternatives. Which of the valuation methods (the cost of borrowing or the earning's on investments) should be used to determine the price of an alternative? Choose one of the previously mentioned methods and explain why it is the correct method to use?