EX$5-3($Algo$)$ The Munsters have been saving...

The Munsters have been saving money in order to buy a house. They figure that, given current interest rates, they could afford a $$405,000$ home. Before looking at houses on the market they decide to explore the possibility of building a new home. The Munsters figure they could buy a suitable lot for $$72,500-$$$77,500.$ At a minimum they want to build a $2,300-$square$-$foot house. The cost for a house of the quality they desire is $$162$ per square foot. Given this information, should the Munsters pursue the option of building a new house?

Answer is complete but not entirely correct.

Estimated lowest total cost of building

$$444,000$

Answer is complete and correct.

The Munsters should

not consider

building a new house under the current conditions.