You want to buy land. One possibility would earn rent in year one of 133,000 per year with annual expenses of 43,000. Growth of rent and expenses of 2%. Construction would be $575,000 and the discount rate would be 17% The second option would have rent in year one of 197,000 with annual expenses of 73,000. The growth of rent and expenses would be 2.25% and the discount rate would be 15%. The construction cost would be $785,000. How much should you bid on this land? Hint, this is not a real option question.

A. 156,365

B. 212,362

C. 187,549

D. 256,963

E. 245,632