CrossTown Builders is considering remodeling an old building it currently owns.The building was purchased ten years ago for $1.2 million.Over the past ten years, the firm rented out the building and used the rent to pay off the mortgage.The building is now owned free and clear and has a current market value of $1.9 million.The company is considering remodeling the building into industrial-type apartments at an estimated cost of $1.6 million.The estimated present value of the future income from these apartments is $4.1 million.Which one of the following defines the opportunity cost of the remodeling project?

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The Answer of CrossTown Builders is considering remodeling an old building it currently owns.The building was purchased ten years ago for $1.2 million.Over the past ten years, the firm rented out the building and used the rent to pay off the mortgage.The building is now owned free and clear and has a current market value of $1.9 million.The company is considering remodeling the building into industrial-type apartments at an estimated cost of $1.6 million.The estimated present value of the future income from these apartments is $4.1 million.Which one of the following defines the opportunity cost of the remodeling project?

CrossTown Builders Is Considering Remodeling an Old Building It Currently