Famed gamer Tyler 'Ninja' Blevins is considering whether to replace his aging game console or to spend money on updating it. The replacement console would cost $7,600 now and would need software updates of $500 to be paid at the end of every year for 8 years. At the end of 8 years, the replacement console can be salvaged for $2,700. The existing game console needs increasing amounts of software updates each year, and its salvage value is falling, as shown below. Year Maintenance Salvage Now $0 $2,400 1 $1,500 $1,500 (The existing console can be sold for $2,400 now. If it is sold in 1 year, the price will be $1,500. If the existing console is used between t = 0 and t = 1, a software update costing $1,500 must be paid at t=1.) Tyler Blevins faces an opportunity cost of capital of 6%. more than operating Expressed in Year 1 dollars, operating the old game console from t = 0 to t =1 would cost Tyler Blevins the new game console from t = 0 to t = 1. $1,093 $306 $612 $1,290 $2,022 Famed gamer Tyler 'Ninja' Blevins is considering whether to replace his aging game console or to spend money on updating it. The replacement console would cost $7,600 now and would need software updates of $500 to be paid at the end of every year for 8 years. At the end of 8 years, the replacement console can be salvaged for $2,700. The existing game console needs increasing amounts of software updates each year, and its salvage value is falling, as shown below. Year Maintenance Salvage Now $0 $2,400 1 $1,500 $1,500 (The existing console can be sold for $2,400 now. If it is sold in 1 year, the price will be $1,500. If the existing console is used between t = 0 and t = 1, a software update costing $1,500 must be paid at t=1.) Tyler Blevins faces an opportunity cost of capital of 6%. more than operating Expressed in Year 1 dollars, operating the old game console from t = 0 to t =1 would cost Tyler Blevins the new game console from t = 0 to t = 1. $1,093 $306 $612 $1,290 $2,022