Barbara left a $25,000/year job as an architect to run a catering business. She invested $100,000...
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Barbara left a $25,000/year job as an architect to run a catering business. She invested $100,000 of her own money to purchase a building for the business. The interest rate that Barbara typically earns on her investments is 10%, while real estate is not appreciating in Barbara's neighborhood. Barbara spends $150,000 per year on employee salaries, supplies, etc. What is the economic cost of Barbara's catering business? Barbara left a $25,000/year job as an architect to run a catering business. She invested $100,000 of her own money to purchase a building for the business. The interest rate that Barbara typically earns on her investments is 10%, while real estate is not appreciating in Barbara's neighborhood. Barbara spends $150,000 per year on employee salaries, supplies, etc. What is the economic cost of Barbara's catering business?
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The economic cost of Barbaras catering business is the opportunity cost of leaving her job as an ... View the full answer
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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