A Land Owner Is Considering Two Actions and Mortgage Interest

Multiple Choice

A land owner is considering two actions and mortgage interest rates will affect his outcomes.The payoff table ($ million) is shown below.According to the maximin approach, the land owner should build ________________________ .

A) the active retirement community if interest rates go down
B) the active retirement community
C) townhouses/condominiums if interest rates go down
D) townhouses/condominiums
E) either the active retirement community or townhouses/condominiums