Question 3 (10 marks) Your friend Edmund is migrating to Manchester, the U.K., next year. He is considering whether he should buy a house there or rent one. A real estate agent in Manchester provides him several freehold estates with an average selling price of 300,000. Besides, the agent also told Edmund that many houses are available for lease with an average rent of 200 per week, but the level of rent is expected to rise by 1% a year. Suppose the transfer cost of a property is 6% of the property price and Edmund can get a 20-year mortgage loan, at a fixed interest rate of 3%, from a British bank with a loan-to-value ratio of 70%. Currently, Edmund has 90,000 in his bank account that earns an interest rate of 0.5% a year. A) Calculate Edmund's cost of capital of buying a house in Manchester. (3 marks) B) What is Edmund's cost of owning a house if he stays there for one year only? (3 marks) C) If Edmund wants to stay there for 6 years, should Edmund buy a house? Briefly explain your answer. (4 marks)