Scenario 9.1 Jane Left Her Job at Siemens and Started Her Own

Scenario 9.1
Jane left her job at Siemens and started her own boutique. She used to earn $50,000 annually at Siemens. She took a loan of $10,000 and used $20,000 from her personal savings to begin her venture. She agreed to repay the loan with 10% interest. Her business is bringing in $80,000 annually. She has rent and labor expenses of $15,000. Also assume that Jane could have used her own money i.e. $20,000 to buy stocks in Intel which would have returned 5% to her last year.
-Refer to Scenario 8.1. Compute Jane's economic profit.

A) $13,000
B) $14,000
C) $20,000
D) $15,000
E) $10,000

Correct Answer:

Verified

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