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why choose bAnd why the answer isn't ?75000+20000+150000*0.1?? 13. Arthur is considering becoming chair of a company board that will pay $200 000 a year.

why choose bAnd why the answer isn't ?75000+20000+150000*0.1??

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13. Arthur is considering becoming chair of a company board that will pay $200 000 a year. Taking this position will require Arthur to give up another directorship that pays $75 000 a year. The job will involve travel anticipated to have an out-of-pocket cost of $20 000 a year. It will also require Arthur to buy $150 000 of shares in the company (which he must sell back to the company for $150,000 when he ceases to be chair of the board); currently Arthur has the money invested in the bank earning an interest rate of 10% per year. What is Arthur's anticipated economic profit in the business's first year of operation? a. $80 000 10000 x 0- 1 b. $90 000 1010 c. -$25 000 d. $110 000 e. -$40 000 40 VOO 6 of 11

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