You own a building that you plan on leasing to a business man for 60,000 per year for 3 years. You estimate the annual e

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answerhappygod
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You own a building that you plan on leasing to a business man for 60,000 per year for 3 years. You estimate the annual e

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You own a building that you plan on leasing to a business manfor 60,000 per year for 3 years. You estimate the annual explicitcost and implicit cost of maintaining the building at 20,000, and10,000 respectively. All revenues are received, and costs borne, atthe end of each year. Suppose the interest rate is 2.5 percent.
a. Determine the present value of the stream of your accountingprofits.
b.Determine the present value of the stream of your economicprofits.
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