You can purchase an optical scanner today for $450. The scanner provides benefits worth $66 a...

You can purchase an optical scanner today for $450. The scanner provides benefits worth $66 a year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 20% per year. Suppose the discount rate is 10%.

Should you purchase the scanner today?

When is the best purchase time?

Wait for 4 years
Wait for 5 years
Wait for 6 years

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Expert Solution

jeff jeffy answered 1 year ago

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