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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

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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 1080p capability and the Sony 64-inch plasma with 1080p features. The price of the Samsung is $2, 370 and the Sony will cost $2, 720. 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 to be able to sell the Samsung for $405 by the end of 3 years; they expect they could sell the Sony for S350 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 $930 and for the Sony to be $970. Both sets can be viewed as quality units and are equally risky purchases. They estimate their opportunity cost to be 9.3%. The Butlers wish to choose the better alternative from a purely financial perspective. To perform this analysis, they wish to do the following: Determine the NPV of the Samsung HD plasma TV. Determine the ANPV of the Samsung HD plasma TV. Determine the NPV of the Sony HD plasma TV. Determine the ANPV of the Sony HD plasma TV. The NPV of the Samsung HD LCD is $281.74. (Round to the nearest cent.) The ANPV of the Samsung HD LCD is $. (Round to the nearest cent.)

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