Multiple Choice
A firm has an average investment of $100,000 during the year.During the same period,the firm generates an after-tax income of $16,000.If the cost of capital is 15%,what is the economic profit?
A) +$16,000
B) +$15,000
C) +$1,000
D) -$1,000
Correct Answer:
Verified
Correct Answer:
Verified
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