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An owner can lease her building for $100,000 per year for the next three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All revenues are received, and costs are borne, at the end of each year. Assume interest rate is 4%.
A. Explain what the implicit cost refers to in this case?
B. What is her accounting profit at the end of the first year?
C. What is her economic profit at the end of the first year?
D. What is the present value of the account profits in three years?
E. What is the present value of the economic profits in three years?
Suppose the country club bills based on a sample of 4 members are: 383, 1,051, 637, 928. What is the standard deviation for this sample of bills? (please round your answer to 1 dec
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Why is it important for an organization to study and understand its external environment?
Maximum profits will occur at the output level where is the greatest vertical distance between Total Revenue(TR) AND Total Cost(TC. uSE THE TOTAL REVENUE-TOTAL COST CURVES TO Illus
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