Suppose an Office Building Is Owned for Which Long-Term Leases

Multiple Choice

Suppose an office building is owned for which long-term leases have been signed, the tenants pay utilities and operating costs, and straight-line amortization is taken. The rate of return on the book value of this investment can be expected to:

A) Increase over time
B) Remain constant over time
C) Decrease over timed
D) Vary randomly over time