Answer:
$10,000.
Explanation:
The economic profit by Robert is $10,000. this is calculated below.
The amount withdrawn and invested = $100,000
Cost of property sold = $120,000
Profit from the sale of the property = $20,000
Amount made if he had not withdrawn the money = $110,000
Profit if he had not withdrawn the money = $10,000
Economic profit = $20,000 - $10,000
= $10,000
The opportunity cost of $10,000 (foregone interest) must be included to determine economic profit.
