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Business, 04.05.2020 23:42 jetblackcap

Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his first year. Which of the following statements is correct? a. Sebastian's economic profit is -$16,000, and his accounting profit is $14,600.b. Sebastian's economic profit is $4,600, and his accounting profit is $35,000. c. Sebastian's economic profit is $4,000, and his accounting profit is $34,600.d. Sebastian's economic profit is -$16,000, and his accounting profit is $34,600.

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