Question: Carlie needed a personal computer ( PC ) for school. After some searching, she was down to two possibilities. One she had found in a
Carlie needed a personal computer PC for school. After some searching, she was down to two possibilities. One she had found in a national franchised computer store, where she could purchase a brand new PC for $ with a oneyear guarantee. But she was intrigued by a second possibility: a local charity store was offering a used machine that had been donated exactly the same model as in the store for $
Carlie talked to a computer repair specialist, who said the principal problem with the used model of PC was the hard drive, which was prone to failure: he estimated that of the PCs of this model and age would require a new drive. He offered to test the computer and check the condition of the drive for $ If the drive was no good, a new drive could be fitted for $ and would be guaranteed for one year. He added a qualification that his testing was not perfect: about of drives that passed his testing failed soon afterwards requiring a new drive $ plus a service charge of $ for diagnosing the problem.
Calculate the expected cost associated to buy the used PC from the charity store if Carlie decides to test the PC for a possible hard drive failure. Where relevant, present your answer rounded to two decimal places.
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