I Can Buy a Grapefruit Laptop Computer for $3 000

Multiple Choice

I can buy a Grapefruit laptop computer for $3 000, or a Doors laptop for $2 500. The Grapefruit has an expected life of five years, whereas the Doors is only expected to last four years. Both provide equivalent service. A four-year-old Grapefruit has a salvage value of $200. If my MARR is 10%, what is the present cost of choosing the Grapefruit over the Doors?

A) $300
B) $315
C) $363
D) $383
E) $636