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Val is considering purchasing a new video plasma display panel to use with her notebook computer. One model, the XJ3, costs $4100 new, while
Val is considering purchasing a new video plasma display panel to use with her notebook computer. One model, the XJ3, costs $4100 new, while another, the Y19, sells for $3300. Val figures the XJ3 will last about six years, at which point it could be sold for $900, while the Y19 will last for only four years and will also sell for $900. Both panels give similar service, except the Y19 is not suitable for client presentations. If she buys the Y19, about four times a year she will have to rent one similar to the XJ3, at a total year-end cost of about $300. Using present worth and the least common multiple of the service lives, determine which display panel Val should buy. Val's MARR is 10 percent. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 10%. The present cost of the XJ3 is $ The present cost of the Y19 is $ (Round to the nearest cent as needed.) Val should buy the model.
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