Janet is running a painting business. She receives $200,000 payment from buyers at the end of year, at which time she also pays $20,000 fixed cost and 30% of the revenues as a variable cost.

An opportunity for new business opens for Janet from which she will make $100,000 accounting profits at the end of year.If she takes this new business, then she has to reduce her work for painting business, so the revenue from painting business will drop by 50%. What will be the size of annual economic profit from the new business?