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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

Finance

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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 ?$2,385 and the Sony will cost ?$2,690. 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 ?$385 by the end of 3? years; they expect to sell the Sony for ?$340 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 ?$860 and for the Sony to be ?$965. Both sets can be viewed as quality units and are equally risky purchases. They estimate their opportunity cost to be 9.4%. The Butlers wish to choose the better alternative from a purely financial perspective. To perform this analysis they wish to do the? following:

a) The NPV of the Samsung HD LCD is ?$_______ ( round to two decimal places)

The ANPV of the Samsung HD LCD is ?$_______ ( round to two decimal places)

b) The NPV of the Sony HD LCD is ?$_______ ( round to two decimal places)

The ANPV of the Sony HD LCD is ?$_______ ( round to two decimal places)