Suppose a Piece of Capital Equipment Offers Its Last MRP

Suppose a piece of capital equipment offers its last MRP of $40 000 in one year, after which it is valueless. At an annual interest rate of 8 percent, a profit- maximizing firm would be willing to buy this unit of capital if its purchase price is

A) above $37 037.
B) below $37 037.
C) above $40 000, but only at a higher interest rate.
D) below $40 000.
E) above $40 000.