Professional Properties Is Considering Remodeling the Office Building It Leases

Multiple Choice

Professional Properties is considering remodeling the office building it leases to Heartland Insurance.The remodeling costs are.estimated at $2.8 million.If the building is remodeled,Heartland Insurance has agreed to pay an additional $820,000 a year in rent for.the next five years.The discount rate is 12.5 percent.What is the benefit of the remodeling project to Professional Properties?

A) $119,666.04
B) -$89,072.00
C) $105,214.70
D) $108,399.15
E) -$111,417.03