Robert James worked as a real estate agent for Simms Reality for 12 years. His annual income is approximately $120,000 per year. Robert is considering establishing his own real estate agency. He expects to generate revenues during the first year of $3 million. Salaries paid to his employees are expected to total $2 million. Operating expenses (i.e., rent, supplies, utility services) are expected to total $300,000. To begin the business, Robert must borrow $550,000 from his bank at an interest rate of 15 percent. Equipment will cost Robert $75,000. At the end of one year, the value of this equipment will be $40,000, even though the depreciation expense for tax purposes is only $8,000 during the first year. a. Determine the (pre-tax) accounting profit for this venture. b. Determine the (pre-tax) economic profit for this venture. c. Which of the costs for this firm are explicit and which are implicit?