Final answer:
The firm's accounting profit is calculated by subtracting the total expenses from the sales revenue, resulting in $50,000. To calculate the future value of the firm's assets using the internal growth rate, one must know the present value of assets and the specific growth rate, which were not provided.
Step-by-step explanation:
To calculate the firm's accounting profit, we subtract the total expenses from the sales revenue. In this scenario, the firm had sales revenue of $1 million and incurred expenses as follows: $600,000 on labor, $150,000 on capital, and $200,000 on materials. Therefore, the firm's accounting profit can be calculated as:
Sales Revenue - Labor Costs - Capital Costs - Material Costs = Accounting Profit
$1,000,000 - $600,000 - $150,000 - $200,000 = $50,000.
So, the firm's accounting profit would be $50,000.
Regarding the future value of the firm's assets, a calculation would require the firm's initial assets and an internal growth rate, or the application of a specific formula that accounts for reinvested earnings. However, that information isn't provided here. If we had the internal growth rate and the current value of total assets, we would apply a growth formula similar to the GDP growth example provided:
Future Value of Assets = Present Value of Assets × (1 + Internal Growth Rate)number of years
Without the actual internal growth rate or the present value of assets, we cannot calculate the asset value. However, the concept is important to understand future value in financial contexts.