Question $4$

$\frac{0}{1}$ pts

You considering upgrading the common area HVAC for several apartment buildings. The total cost for the upgrade is $$120,000$ and the expected utility savings are $$\frac{750}{?}$ month. The market cap rate is $7\%.$ What is the return on renovation and should you proceed?

$7\mathrm{.}5\%$ and you should proceed

$6\mathrm{.}25\%$ and you should not proceed

$6\mathrm{.}25\%$ and you should proceed

$7\mathrm{.}5\%$ and you should not proceed