NPV and ANPV decisions Personal Finance Problem Richard and Linda Butler decide that it is time to purchase a high$-$definition $($HD$)$ television because the technology has improved and prices have fallen over the past $3$ years. From their research, they narrow their choices to two sets, the Samsung $64-$inch plasma with $1080$ p capability and the Sony $64-$inch plasma with $1080$ p features. The price of the Samsung is $$2,395$ and the Sony will cost $$2,745.$ They expect to keep the Samsung for $3$ years; if they buy the more expensive Sony unit, they will keep the Sony for $4$ years. They expect sell the Samsung for $$420$ by the end of $3$ years; they expect to sell the Sony for $$325$ at the end of the year $4.$ Richard and Linda estimate that the end$-$of$-$year entertainment benefits $($i$.$e$.,$ not going to movies or events and watching at home$)$ from the Samsung to be $$855$ and for the Sony to be $$1,050.$ Both sets can be viewed as quality units and are equally risky purchases. They estimate their opportunity cost to be $9\mathrm{.}2\%.$ The Butlers wish to choose the better alternative from a purely financial perspective. To perform this analysis they wish to do the following:

a$.$ Determine the NPV of the Samsung HD plasma TV$.$

b$.$ Determine the ANPV of the Samsung HD plasma TV$.$

c$.$ Determine the NPV of the Sony HD plasma TV$.$

d$.$ Determine the ANPV of the Sony HD plasma TV$.$

e$.$ Which set should the Butlers purchase and why?

a$.$ The NPV of the Samsung HD LCD is $

$($Round to the nearest cent.$)$

b$.$ The ANPV of the Samsung HD LCD is $$.($Round to the nearest cent.$)$

c$.$ The NPV of the Sony HD LCD is $ $($Round to the nearest cent.$)$

d$.$ The ANPV of the Sony HD LCD is $ $($Round to the nearest cent.$)$

e$.$ Which set should the Butlers purchase and why? $($Select from the drop$-$down menus.$)$

Richard and Linda should select the $$ set because its ANPV of $$ is greater than the $$ ANPV of the $$ set.