Bo Buys and Sells Real Estate

question 213

Multiple Choice

Bo buys and sells real estate. Two weeks ago, he paid $400,000 for a house on Cypress Street, intending to spend $50,000 on repairs and then sell the house for $500,000. Last week, the city government announced a plan to build a new landfill on Cypress Street just down the street from the house Bo purchased. As a result of the city's announced plan, Bo is weighing two alternatives: He can go ahead with the $50,000 in repairs and then sell the house for $390,000, or he can forgo the repairs and sell the house as it is for $350,000. He should

• A)keep the house and live in it.
• B)go ahead with the $50,000 in repairs and sell the house for $390,000.
• C)forgo the repairs and sell the house as it is for $350,000.
• D)move the house from Cypress Street to a more desirable location, regardless of the cost of doing so.

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Definitions:

Long-Term Prognosis

The projected outcome or expected development of a condition or illness over an extended period.

Psychological Methods

Techniques and procedures used in psychology to explore, explain, and predict behavior and mental processes, including experimentation, observation, and assessment tools.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior in individuals, often leading to distress or impairment of personal functioning.

Anxiety And Mood

Relates to how feelings of nervousness, worry, or unease can impact an individual's emotional state or mood.