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An owner can lease her building for $160,000per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost
An owner can lease her building for $160,000per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 7 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits.
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b. Economic profits.
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