You are deciding between two couches. The first one, from Ikea, costs $800 and will last for 3 years (before breaking). The second one, from Restoration Hardware, costs $3200 but will last for 16 years. If the appropriate discount rate is 6%, which couch should NAME buy it a new couch must be purchased each time the current couch breaks?

Please write out work by hand and how calculations. Thank you.