Suppose an office building is owned for which long-term leases have been signed, the tenants pay utilities and operating costs, and straight-line depreciation 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 time
D) Vary randomly over time

Question

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The Answer of Suppose an office building is owned for which long-term leases have been signed, the tenants pay utilities and operating costs, and straight-line depreciation 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 time
D) Vary randomly over time

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