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Business, 21.12.2019 04:31 jjaerere6609

As part of an estate settlement mary received $1 million. she decided to use the money to purchase a small business in anywhere, usa. if mary would have invested the $1 million in a risk-free bond fund she could have made $100,000 each year. she also quit it her job with lucky. com inc. to devote all of her time to her new business; her salary at lucky. com inc. was $75,000 per year.
at the end of the first year of operating her new business, mary's accountant reported an accounting profit of $150,000. what was mary's economic profit?

a. $25,000 loss
b. $50,000 loss
c. $25,000 profit
d. $150,000 profit 13.

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