Total development costs including sufficient profit for the developers are SF Cap

Question

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.

Answer

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