Option 1: Construct the new equipment in-house and sell the old equipment for cash at a fair value of $50,000. R St H would take out a one-year construction loan for $900,000 at the time construction begins at a short-term borrowing rate of 10% for the construction Anticipated actual expenditures for constructing the equipment are $980,000, and on awe ighted-average basis the expenditures are approximately $625,000. The bulk of the $980,000 will be nanced with the construction loan, and the