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EX 5 - 2 ( 1 ) an ) The Munsters have been saving... Assessment Tool iFrame The Munsters have been saving money in order

EX5-2(1)an) The Munsters have been saving...
Assessment Tool iFrame
The Munsters have been saving money in order to buy a house. They figure that, given current interest rates, they could afford a
$475,000 home. Before looking at houses on the market they decide to explore the possibility of building a new home. The Munsters
figure they could buy a suitable lot for $107,500-$$112,500. At a minimum they want to build a 2,300-square-foot house. The cost for a
house of the quality they desire is $190 per square foot. Given this information, should the Munsters pursue the option of building a
new house?
Estimated lowest total cost of building
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