Six years ago, a guy bought a residential lot as an investment at CA$10,000. Since then the market value of the lot increases 10% per year. However, one year ago, an urban railway was constructed nearby his land. The prospective noise, air pollution, etc. reduced the market value of the lot to its half. Fortunately, the annual market value increasing rate has kept the same as before for the last year, i.e. 10%. Now this guy has an offer of US$9,000 from a potential buyer. A. List all the sunk cost(s) in this case. [1 mark] B. The currency exchange rate is CA$1.00 US$0.98 right now while it was CAS1.00 US$0.88 six years ago. Would you suggest him to take the offer or decline it in term of the calculations? (Hint: If the market increasing rate is and the initial investment at time zero (0) is P. the current value of the investment at year n is PV-P(1-1)') [3 marks]