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An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of stream of:?

a. Accounting profit

B. economicprofit

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9893885
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