A small manufacturing company needs to purchase a machine that will have a first cost of $70,000. The company wants to buy an option that will allow it to purchase the machine for the same price of $70,000 for up to 1 year from now. If the companys MARR is 10% per year, the maximum amount the company should pay for the option is closest to:

a. $6365

b. $6845

c. $5850

d. $7295