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Mary Graham Worked as a real estate agent for Peidmont Propertires for 15 years. her Annual income is approximately $100,000 per year. Mary is considering
Mary Graham Worked as a real estate agent for Peidmont Propertires for 15 years. her Annual income is approximately $100,000 per year. Mary is considering establishing her own real estate agency. She expect to generate revenues during the first year of $2 million. Salaries paid to her employees are expected to total $1.5 million. Operating expenses are expecte4d to total $250,0000. To begin the business, Mary must borrow $5000,000 from her bank at an interest rate of 15 %. Equipment costs Mary $50,000. At the end of one year, the value of this equipment will be $30,000, even though the depreciation expense for tax purposes is only $5,000. Determine the (pretax) accounting profit for this venture Determine the (pretax) economic profit for this venture Which of the costs for this firm and explicit and which are implicit
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