(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem. ) Allen College has a telephone system that is in poor condition.The system can be either overhauled or replaced with a new system.The following data have been gathered concerning these two alternatives: Allen College uses a 12% discount rate and the total cost approach to net present value analysis.Both alternatives are expected to have a useful life of eight years. The net present value of the alternative of replacing the present system with the proposed new system is closest to:

A) ($233, 300)
B) ($283, 300)
C) ($263, 100)
D) ($273, 100)