Question: 3. A real estate developer plans to construct and then rent a 15-unit office building. The construction costs will be incurred immediately and are expected

3. A real estate developer plans to construct and then rent a 15-unit office building. The construction costs will be incurred immediately and are expected to be $700. The annual cash flow on all units is expected to be $150 starting in one year and continuing for a total of 3 consecutive years. Calculate the profitability index for the office building using a required rate of return of 12.00%.

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