Economic income doesn’t get affected by noncash charge. Any other differences you guys know?
Economic income includes economic depreciation rather than accounting depreciation. Economic income includes all opportunity costs including normal profit. Not sure, but would people factor in externalities in a calculation of economic income?
i believe accounting income does not include normal profit??? but economic does…
mcf Wrote: ------------------------------------------------------- > Not sure, but would people factor in externalities > in a calculation of economic income? I think so, as long as you can measure the value of it.
economic profit includes foregone interest, dpereciation and normal profit
economic income does nto subtract cost of debt financiing and is it based on changes in market value of the company not changes in its book value.
my bad, thinking of economic profit (in econ) too mch crap!