Catherine Buys and Sells Real Estate

Multiple Choice

Catherine buys and sells real estate.Two weeks ago,she paid $300,000 for a house on Pine Street,intending to spend $50,000 on repairs and then sell the house for $400,000.Last week,the city government announced a plan to build a new landfill on Pine Street just down the street from the house Catherine purchased.As a result of the city's announced plan,Catherine is weighing two alternatives: She can go ahead with the $50,000 in repairs and then sell the house for $290,000,or she can forgo the repairs and sell the house as it is for $250,000.She should

A) keep the house and live in it.
B) go ahead with the $50,000 in repairs and sell the house for $290,000.
C) forgo the repairs and sell the house as it is for $250,000.
D) move the house from Pine Street to a more desirable location, regardless of the cost of doing so.