Question
Val is considering purchasing a new video plasma display panel to use with her notebook computer. One model, the XJ3, costs $4500 new, while another,
Val is considering purchasing a new video plasma display panel to use with her notebook
computer. One model, the XJ3, costs $4500 new, while another, the Y19, sells for $3200. Val figures the XJ3 will last about three years, at which point it could be sold for $1000, while the Y19 will last for only two years and will also sell for $1000. Both panels are 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 yearend 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
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