Calculate the accounting and economic profit of this firm:
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 30P
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The company's revenue is 100 000 rubles. The cost of materials, raw materials is 35 000 rubles, the cost of fuel and energy consumption is 10 000 rubles. The wages of employees are 25 000 rubles.
Having a specialist diploma, an entrepreneur could receive a wage as an employee in another company in the amount of 5000 rubles, while he could put the available money (200 000) into the bank at an annual interest rate of 10%.
Calculate the accounting and economic profit of this firm:
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