Question 1 / 31:  Total development costs (including sufficient profit for the developers) are $200/SF. Cap rates in the asset market are 10%.

What is the "replacement cost rent" in this market?

A  $20.00/SF.
B  $16.00/SF.
C  $12.50/SF.
D  $10.00/SF.
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Real Estate Finance & Investment Midterm Exam 2003

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Attribution:  Geltner, David, and Tod McGrath. 11.431J Real Estate Finance and Investment, Fall 2006. (MIT OpenCourseWare: Massachusetts Institute of Technology), http://ocw.mit.edu/courses/urban-studies-and-planning/11-431j-real-estate-finance-and-investment-fall-2006 (Accessed 1 May, 2014). License: Creative Commons BY-NC-SA
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