What was hermiones economic profit-loss

Reference no: EM13221273

Hermione received an inheritance of $1 million. She decided to use the money to purchase a small magical potions business in HogsHamlet, United Kingdom. If Hermione had invested the $1 million in a risk free bond fund she could have made $50,000 each year. She also quit her job with LuckyCharms Inc. where she was earning an annual salary of $75,000 to devote all of her time to her new business. At the end of the first year of operating her new business, Hermione's accountant reported an accounting profit of $100,000. What was Hermione's economic profit/loss?

Reference no: EM13221273

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