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You are analyzing an office building to determine if it make sense to build it. Market rents are $11 per square foot. The building and

You are analyzing an office building to determine if it make sense to build it. Market rents are $11 per square foot. The building and site improvements cost $145; the investor requires a 6 percent return. If market vacancy and credit loss is 5 percent and expenses are 15 percent, do you move forward with the project? A yes or no answer is insufficient, provide the PGI.

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