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Professional Properties is considering remodeling the office building it leases to Heartland Insurance. the remodeling costs are estimated at $3.4 million. If the building is
Professional Properties is considering remodeling the office building it leases to Heartland Insurance. the remodeling costs are estimated at $3.4 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a yerar in rent for the next five years. The discount rate is 15 percent. What is the benefit of the remodeling project to Professional Properties?
A. -$651,233
B. -$489,072
C. $5,214
D. $1128,399
E. $311,417
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