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Please include step by step for each so i can learn the material. Homework 1/Problem Set 1 Problem 1 An accounting professor is considering opening
Please include step by step for each so i can learn the material. Homework 1/Problem Set 1 Problem 1 An accounting professor is considering opening his own consulting firm. To do so, she will have to quit her current job, that pays $125,000 a year, and take over a building that she owns and currently rents to her friend for $15,000 a year. Additionally, she will have to withdraw $50,000 from her savings, that pays 5 percent per year. Her expenses at the firm have been estimated as follows: $80,000 for employee salaries, $6,000 for insurance, $5,000 for utilities, and $9,000 for supplies. She anticipates annual revenues of $250,000. Determine: a. The annual explicit costs b. The annual implicit costs C. The total annual opportunity costs d. The annual accounting profits e. The annual economic profits
Please include step by step for each so i can learn the material.
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