1. You can purchase a scanner today for $400. The scanner provides benefits worth $60/year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 20%/year. Assume a 10% discount rate. Is it a good idea to purchase the scanner today? If you plan to purchase the scanner at some point within the next 8 years, which point in time is optimal to make the purchase? Hint- Since the scanner provides benefits of $60/year for 10 years and the discount rate is 10%, the present value of the scanner benefits at the time of purchase will be constant.