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Suppose that you are the manager of a small company that is contemplating construction of a suburban office block. The cost of buying the land

Suppose that you are the manager of a small company that is contemplating construction of a suburban office block. The cost of buying the land and constructing the building is $780,000. Your company has cash in the bank to finance construction. You forecast a shortage of office space in the area and predict that you will be able to rent out the building for two years at $34,000 a year. You forecast that at the end of that time you will be able to sell the building for $872,000.
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