Question

An owner can lease her building for $120,000 per year for three years. The explicit cost...

An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000,and the implicit cost is $55,000. All revenue are received,and cost borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of: Accounting profits and Economic profits

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