A machine was purchased three years ago at a cost of $15,000. The maintenance costs on the machine have risen steadily and currently amount to about $3,000 per year. The machine could be sold for $6,000. If retained, the machine will require an immediate $1,500 overhaul to keep it in operating condition and a second overhaul will be required in year five. MARR = 15%. The updated operating, overhaul cost, and market values over the next five years are as follows:

Year	O&M	Dn	Overhaul	MV
-3
-2		$3,000
-1		$4,800
0		$2,880	$1,500	$6,000
1	$3,000	$1,728		$4,000
2	$3,500	$1,728		$3,000
3	$3,800	$864		$1,500
4	$4,500			$1,000
5	$4,800		$5,000	$0

and the asset is classified as a five-year MACRS property and has a current book value of $5,760 if it is disposed of now. The firm's marginal tax rate is 40%, and its after tax MARR is 15%.

What is the equivalent annual cost of owing and operating the machine for two more years after taxes?

a.	$7,211
	b.	$4,436
	c.	$4,771
	d.	$4,980