My only argument would be, for $400, why not just get a 1080p LED projector that'll last 20,000 hours.
Where are you finding a 1080p projector for $400?
Also, regarding the screen, blackout cloth works really well. You can get all that you need at Jo-Ann Fabric for <$20 (I think that I got away with a 50% coupon to and bought mine for $10). Add a couple of pieces of mdf to hold the screen straight at the top and bottom and you can have a nice screen for $25