I have no independent expertise to offer on this, but I do have a
supportive anecdote. I was faced with a very similar decision a few months
ago ($400.00 to repair a 4 year old computer). I was not surprised that
every computer store I talked to told me to buy a new computer, but my
confidence in this course of action was increased when the IT guys at both
my (campus) employer and my wife's (for-profit business) employer both
agreed, and said that in their view 4 years was the reasonable useful life
of modern laptops (the IT guys both said they get new puters no later than
every 3 years, but confessed that might have been job and personality
related). Having had several desktop PCs for more than 5 years each in my
pre-Apple days, I was a little skeptical of this, but we went ahead and got
the new machine, and have not really regretted it. Every time I wonder if
maybe I could have saved myself 400 (increasingly) precious dollars by
making the repair, I remind myself how I would have felt if I had invested
the $400 and then found another $200 - $400 problem a few months later.
Plus, everyone I talked to said that I should not even consider investing
an additional $400 in fixing the old machine if I did not also upgrade the
RAM, which would have gotten me in even deeper.

-- 
TV or Not TV .... The Smartest (TV) People!
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