Question 1 (5 points) Two potential uses are identified for a parcel. One use costs $240,000 to construct and provides an income of $50,000 per year; in order to proceed with this use, legal and consulting fees to receive a zoning variance will cost $22,000. Another use costs $310,000 and provides an income of $48,000 per year; due to physical constraints, however, $25,000 must be set aside to provide adequate stormwater drainage ponds for this use. If a capitalization rate of 12% is used in the first example, and a capitalization rate of 10% is used in the second, and the required rate of return is 11%, which use is the highest-and-best use? You can treat the zoning variance and stormwater management costs as operating expenses