Let's assume that you buy a $5 k projector and keep it for five years:
+ $5,000 initial cost
+ $300 lamp replacement (assume 1 lamp over 5 years)
- $700 residual value after 5 years
Total amount spent is $4,600 or abour $77 per month.
Let's say you keep it 2-1/2 years, replace it with another $5k projector and sell it after another 2-1/2 years:
+$5,000 initial cost
-$2,500 resale (assume 50% depreciation in 2-1/2 years)
+$5000 Buy replacement
-$2,500 resale of second projector (again assume 50% depreciation in 2-1/2 years)
Total amount is $5,000 over five years or about $84 per month
If these two scenarios are correct, then the actual cost of owning a new $5k projector every 2-1/2 years is only $7 more per month (that is $84-$77, or $420 over 5 years). That is less than the price of a single ticket at a movie theater per month.
I have been a buy-and-hold guy for many years, but it looks like the price difference is such that I should consider replacing projectors more often.
What has been your experience?