1a) After saving $90,000 Rachel decide to buy a house that she plan to renovate and then rent out. The renovations take three years and cost $25,000 each year. In the fourth year, Rachel is able to rent it out and make $60,000 a year for until she decide to sell the house which is 10 years after she bought it for $250,000. At the sale, she also have to pay 6% of the closing sale price to the realtors. What is the present value of the house assuming a MARR of 18%?