Question: Jill took $ 4 0 comma 0 0 0 4 0 , 0 0 0 that she had in savings and started her own business.

Jill took
$40 comma 00040,000
that she had in savings and started her own business. If left in investments she would have earned
$4 comma 0004,000
this year. Jill also left a job that paid her
$50 comma 00050,000
a year and plans on paying herself
$30 comma 00030,000.
Materials and other labor costs will be
$60 comma 00060,000.
The company is located in a building that Jill owns. She could have rented the building out for
$20 comma 00020,000
but plans on charging the company only the insurance and mortgage payment of
$10 comma 00010,000.
What do the accounting and economic costs equal?
Part 2
A.
Accounting costs=
$90 comma 00090,000;
Economic costs=
$160 comma 000160,000
B.
Accounting costs=
$100 comma 000100,000;
Economic costs=
$134 comma 000134,000
Your answer is correct.
C.
Accounting costs=
$40 comma 00040,000;
Economic costs=
$70 comma 00070,000
D.
Accounting costs=
$100 comma 000100,000;
Economic costs=
$100 comma 000100,000
E.
Accounting costs=
$130 comma 000130,000;
Economic costs=
$200 comma 000

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