Question: 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

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%. a. -0.51 b. 0.51 c. -1.94 d. 1.94

Please don't use Excel

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