determine the present value
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An owner can lease her building for $100,000 per year for three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All revenues are received, and costs are borne, at the end of each year, if the interest rate is 4 percent, determine the present value of the stream of:
A. Accounting profits
B. Economics Profits
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Solution Summary
The expert determines the present value of the stream. Accounting profits and economic profits are examined.
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An owner can lease her building for $100,000 per year for three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All ...
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