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Carlie needed a personal computer ( PC ) for school. After some searching, she was down to two possibilities. One she had found in a

Carlie needed a personal computer (PC) for school. After some searching, she was down to two possibilities. One she had found in a national franchised computer store, where she could purchase a brand new PC for $850 with a one-year guarantee. But she was intrigued by a second possibility: a local charity store was offering a used machine that had been donated (exactly the same model as in the store) for $550.
Carlie talked to a computer repair specialist, who said the principal problem with the used model of PC was the hard drive, which was prone to failure: he estimated that 64% of the PCs of this model and age would require a new drive. He offered to test the computer and check the condition of the drive for $50. If the drive was no good, a new drive could be fitted for $260 and would be guaranteed for one year. He added a qualification that his testing was not perfect: about 29% of drives that passed his testing failed soon afterwards requiring a new drive ($260) plus a service charge of $95 for diagnosing the problem.
Calculate the expected cost associated to buy the used PC from the charity store if Carlie decides to test the PC for a possible hard drive failure. Where relevant, present your answer rounded to two decimal places.

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