A property should be sold when which of the following occurs?

Question

Quizplus · Accepted Answer

When the marginal rate of return of a property falls and becomes equal to the reinvestment rate, it means that the property is no longer generating a profit or increasing in value. In this case, it is best to sell the property and reinvest the proceeds in a more profitable opportunity. Choices A and B suggest that the property is still generating a return, while choice C indicates that the property is generating no return, but does not consider the possible reinvestment rate.

A Property Should Be Sold When Which of the Following