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Barbara left a $25,000/year job as an architect to run a catering business. She invested $100,000 of her own money to purchase a building

 

Barbara left a $25,000/year job as an architect to run a catering business. She invested $100,000 of her own money to purchase a building for the business. The interest rate that Barbara typically earns on her investments is 10%, while real estate is not appreciating in Barbara's neighborhood. Barbara spends $150,000 per year on employee salaries, supplies, etc. What is the economic cost of Barbara's catering business?

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