The government gives the bottom 20% of people a $2000 stimulus. They have found that this kind of stimulus returns 5 times as much money to the government, in terms of tax revenue, as it cost. The city has 1000 people in it. What was the government profit from this project? Give me reasons, before answering the question
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They gave money to 1000 * .2 = 200 people. It cost 200 * 2000 = $400,000. There was a 5 to 1 return so the government collected 5 * 400000 = $2,000,000. That means the profit was 2,000,000 - 400,000 = $1,600,000. So the final answer is 1600000.
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