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24-05-2023
Business

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Jane is considering leaving her job, which pays $80,000 per year, to start her own business. She expects first-year revenues for the new company to be about $500,000; annual overhead and operating expenses are expected to be about $430,000. Jane will have no employees the first year but plans to pay herself $50,000 (which is not part of overhead and operating expenses). If Jane decides to embark on the new venture, what is her predicted economic profit for the first year of operation? (Ignore taxes and benefits.) -$10,000 $20,000 $70,000 $80,000
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