The following information is available for Rory Company: 
Invested capital is defined as total assets.Before-tax operating profit is $175,000.After-tax operating profit is $125,000.The after-tax cost of capital is 10%.What is economic profit?
Definitions:
Sample Means
The average values calculated from samples, used as estimates of the population mean.
Variance
A measure of the dispersion or spread of a set of values, calculated as the average of the squared deviations from the mean.
Binomial Random Variable
A type of random variable that follows a binomial distribution, signifying the number of successes in a series of independent trials.
Normal Approximations
The use of the normal distribution to approximate the distribution of sample statistics for large sample sizes, even if the data itself is not normally distributed.
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