Problem 2 You are trying to decide whether to repaint your house or install vinyl siding. The vinyl siding will cost $22,000 today and will last 20 years. Painting your house will cost $6,000 today. However, a paint job only lasts 5 years. The cost of painting a house is expected to stay at $6,000 in the future. Additionally, there are some weather damaged boards that will need replacing if you choose to paint. Replacing the boards will cost $2,000 today. The new boards will last 20 years, and we assume no future replacement will be needed for future painting jobs. The boards do not have to be replaced if you choose vinyl siding. If you keep your money in a bank account that earns 8% (EAR), would you prefer to paint or install the vinyl siding? Please ignore aesthetics and taxes in this question.
