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2. An owner can lease her building for $200,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the
2. An owner can lease her building for $200,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. All revenues are received, and costs 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. Economic profits
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