Consider a Manufacturing Firm That Contemplates Buying a Lathe with an Annual

Consider a manufacturing firm that contemplates buying a lathe with an annual MRP of $1000 (beginning one year from now) . Suppose the interest rate is 5% per year. If the lathe is obsolete after the fourth MRP is generated, the maximum the firm is prepared to pay now for the lathe is

A) $3723.24
B) $3019.52
C) $3910.51
D) $3546.40
E) $4000