The winning bid for a house at a bank auction was $10. But the house was not in good condition. The couple had to pay $65,000 in explicit expenses and spend many months doing the repairs. The time cost or lost wages are $10,000. What is the market value of the house after repairs are done?
Explicit expenses = $65,000
Bid = $10
Time Cost (Lost Wages) = $10,000
Market Value of House = $?
Market Value of House after expenses & repairs = $10 + $65,000 + $10,000 = $75,010