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

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Question posve 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 buildings) Net profit per year Apartment house 300,000 69,000 Theater 200,000 40,000 Department store 250,000 55,000 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? A B D OB

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