(Evaluate different ways of measuring the value of a house, LO 4) Rajiv owns a home in suburban Ottawa. You obtain the following information about the home:

a. Purchase price in 1978 $175,000

b. Selling price of a similar house on another street last year $625,000

c. Price offered (and turned down) for Rajiv’s house two months ago $575,000

d. What it would cost to rebuild the house if it were destroyed $235,000 Required:

Explain how each of the measures of the “value” of Rajiv’s house could be used by a decision maker. What decision would the person be making? How would the information be useful?