Question 2
Janney purchased a lot 10 years ago, and at the time payed $500,000 for it. She has an opportunity to build a duplex on the lot,
which she estimates will be sold for $1,000,000. Building the duplex will cost $200,000. An investor offers to purchase the lot from
Janney. What is the minimum that the investor must offer so that it is rational for Janney to accept this offer?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a $500,000
b $800,000
c $1,500,000
d $1,000,000
Answered