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points Save Anne A real estate investor has a 30 year lease on a plot of land. He gets estimates on the cost and income

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points Save Anne A real estate investor has a 30 year lease on a plot of land. He gets estimates on the cost and income of various types of building projects on the piece of land as follows: Building type Cost of the building(s) Net profit per year A Apartment house 300,000 69,000 B Theater 200,000 40.000 Department store 250,000 55,000 D Office building 400,000 76,000 Each building type is expected to have a salvage value equal to 20% of its initial cost. If the investor requires a minimum attractive rate of return of at least 12%. Which building type (if any) he would build? CB Moving to another ton will save this response Question 2 of 4

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