I recently took my 27 in i mac to peach mac for service for a flashing green screen. They said it was not a hardware issue but a software issue and want to charge me 99.00 to re-install it. WiIll mac come out with a patch for OS x for this?

I recently took my 27 in I Mac to Peach Mac for service for a flashing green screen. It comes up when I log in.  They said it was not a hardware issue but a software issue and want to charge me 99.00 to re-install it. WiIll mac come out with a patch for OS x for this? Is this worth it?

Having a similar issue with my MacBook Pro w/Retina 2012.
I did the reinstall my self and incrementally did the updates by downloading them from Apple's website instead of using the App Store.
I found that the problem occured after updating to OS X 10.9.3.
The issue is in a 4k resolution update for mirroring displays.  Not that you should be doing that from an iMac but your packaged update may have been similar even though the update was meant for 2013 MacBook Pro's.
You can try reseting the Nvram chip during boot up by pressing "Option + P + R" keys.  You may have to do this after entering your password to log in if you have that set up on your computer.  However this only works on certain models of Mac hardware and may not do anything at all.
After you get your second opinion from Apple, if they again confirm it's a software issue, then you should reinstall OS X Mavericks and download updates from the website instead of the app store.  This way you control your updates.  You will find the OS X 10.9.2 update as well as a seperate security update prior to the released update of the dreaded OS X 10.9.3
Again if you don't want the issue to occur again, then hold off on updating to OS X 10.9.3, but be cautioned that you do so at the risk of leaving your computer less secured even though it will seem to run better.

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