You quit your job as an analyst making $40,000. You then take you $500,000 in savings and open a Mighty Taco restaurant. You work roughly the same hours as before and make $60,000 per year from the restaurant. Assume the interest rate on government treasury notes is 5%. Calculate the economic profit or loss from your move in year 1. (INCLUDE a negative sign if it’s a loss)
You quit your job as an analyst making $40,000. You then take you $500,000 in savings and open a Mighty Taco restaurant. You work roughly the same hours as before and make $60,000 per year from the restaurant. Assume the interest rate on government treasury notes is 5%. Calculate the economic profit or loss from your move in year 1. (INCLUDE a negative sign if it’s a loss)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST3: The Stock Market: Its Function, Performance, And Potential As An Investment Opportunity
Section: Chapter Questions
Problem 3CQ
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You quit your job as an analyst making $40,000. You then take you $500,000 in savings and open a Mighty Taco restaurant. You work roughly the same hours as before and make $60,000 per year from the restaurant. Assume the interest rate on government treasury notes is 5%. Calculate the economic profit or loss from your move in year 1. (INCLUDE a negative sign if it’s a loss)
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