EX$5-2(1)$an$)$ The Munsters have been saving...

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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