Investment timing, Suppose you can purchase an optical

Investment timing

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Reference no: EM1356182

You can purchase an optical scanner today for $400. The scanner provides benefits worth $60 a year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 20 percent per year. Suppose the discount rate is 10 percent. Should you purchase the scanner today or wait to purchase? When is the best purchase time?

Reference no: EM1356182

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