Question: Youre deciding between two couches. The first one, from Ikea, costs $800 and will last for 3 years. The second one, from Restoration Hardware, costs

Youre deciding between two couches. The first one, from Ikea, costs $800 and will last for 3 years. The second one, from Restoration Hardware, costs $3200 but will last for 16 years. Your personal discount rate is 6%. If you will continue to buy the same couch for the rest of eternity (each time it breaks), which should you buy?

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