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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 revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of accounting profits

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not sure about this
base on the quick research
accounting profit is solved by total revenue minus explicit cost so...
120,000-40,000= 80,000
?????? not sure then again i could be wrong :|

User Smaran
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