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13. Martha and Hannah are equal partners in a retail knitting store. Total equity in the store is $800,000, so they own $400,000 each. Based

13. Martha and Hannah are equal partners in a retail knitting store. Total equity in the store is $800,000, so they own $400,000 each. Based on their expectations about opportunity cost, they both expect to earn a 10% return on their invested capital plus $75,000 each in lieu of the salary they could be earning if they had a regular job. Ignoring taxes, how much operating profit are they expecting to make?

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