Famed gamer Tyler 'Ninja' Blevins is considering whether to replace his aging game console or to spend money on updating it. The replacement console would cost $7,800 now and would need software updates of $600 to be paid at the end of every year for 5 years. At the end of 5 years, the replacement console can be salvaged for $2,700. The existing game console needs increasing amounts of software updates each year, and its salvage value is falling, as shown below. Year Maintenance Salvage Now $0 $2,200 1 $1,600 $1,100 (The existing console can be sold for $2,200 now. If it is sold in 1 year, the price will be $1,100. If the existing console is used between t= 0 and t = 1, a software update costing $1,600 must be paid at t=1.) Tyler Blevins faces an opportunity cost of capital of 13%. more Expressed in Year 1 dollars, operating the old game console from t = 0 to t =1 would cost Tyler Blevins than operating the new game console from t = 0 tot = 1. $585 $76 O $831 O $1,024 O $351