Maintaining the building of explicit cost, Macroeconomics

Assignment Help:

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?


Related Discussions:- Maintaining the building of explicit cost

Investment strategy management, I am studying Investment Management. My ass...

I am studying Investment Management. My assignment is to develop my own Investment Strategy in the light of existing Macroeconomic environment situation for a country such as Pakis

Employment, the production of 200 units of consumer goods and 300 units of ...

the production of 200 units of consumer goods and 300 units of capital goods : a) indicates full employment b) may be a result of unemployment c) may be impossible for now d)

Wages, what is a wage? and the difference between real and nominal wages gi...

what is a wage? and the difference between real and nominal wages giving examples?

Unemployment classification, Unemployment classification Economists som...

Unemployment classification Economists sometimes differentiate between different types of unemployment. There are many type of ways of classifying unemployment however the foll

Assignment, explain the profit maximizing/loss minimizing rule may be appli...

explain the profit maximizing/loss minimizing rule may be applied under the 3 scenarios

Interest rates with different maturities, Including different interest rate...

Including different interest rates with different maturities would complicate the models however it wouldn't buy you very much. Because interest rates with different maturities are

#title.national income ddetermkination, explain how national income is dete...

explain how national income is determined under the following economies; 1.frugal economy 2.governed economy

Causes and consequences of inflation for an economy, Question 1: Discus...

Question 1: Discuss why living standards are higher in some countries than others. Question 2: (a) How is inflation measured? (b) What are the causes and consequence

IS LM curve, example on the calculation of IS LM Curve?

example on the calculation of IS LM Curve?

Reaganomics, Reaganomics Supply-side economics or New Classical Econom...

Reaganomics Supply-side economics or New Classical Economics has gained distinct prominence in the early 1980s with the election in the U.S.A of a conservative government unde

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd