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1.Gold Star Industries is in need of new computers.They have narrowed the choices to X and Y.They would need 10 Xs.Each X costs $3750 and
1.Gold Star Industries is in need of new computers.They have narrowed the choices to X and Y.They would need 10 Xs.Each X costs $3750 and requires $500 worth of maintenance each year. At the end of 8 years they can sell each X for $500.They could also buy 8 Ys.Each Y costs $5250 and requires $700 worth of maintenance each year.Ys last 6 years and can be sold at the end for $600 each.Ignore taxes and depreciation.If the WACC is 11% which should they buy?
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