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1. Which of the following is True? a. The riskiness of cash flow from the residual value of the real estate is always similar to

1. Which of the following is True?

a.

The riskiness of cash flow from the residual value of the real estate is always similar to the riskiness of cash flow from the corporations core business.

b.

Real estate may have a lower current return than the typical investment that the corporation makes. Thus, owning the real estate may lower the companys return on assets.

c.

The capital commitments with owning are lower than the capital commitments associated with leasing.

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