Problem: Janet quit her job, where she earned $110,000 per year, to start her own economic consulting firm. She invested $65,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm's costs were $58,000 for rent on the office building, $370,000 for wages and salaries of employees, and $12,000 for supplies and utilities. The market value of the firm's assets at the end of the year was $54,400. During the year, the firm billed its clients for 3,100 hours at $180 per hour. The typical rate of return on financial investments in the economy was 4%.