A Firm Is Considering the Purchase of a Capital Good

A firm is considering the purchase of a capital good that will generate an additional $400 income each year for 4 years (after which time the capital good is useless and has no scrap value) .The interest rate is 3 percent.It follows that the firm should not purchase the capital good if its price is greater than (approximately)

A) $1,358.
B) $1,487.
C) $1,602.
D) $1,749.
E) $1,233.