The market price of the air conditioning is $$1500.$ An air conditioning

company offers a warranty of three years on a new air conditioner, at the

cost of $$140.$ The air conditioner has a $15\%$ probability of a breakdown each

year. A similar air conditioner will cost $$1000$ in year $1,$$$650$ in year $2,$

and $$350$ year $3.$ The interest rate on your credit card is $12\%.$

Refer to the scenario above. The net present value of buying the warranty is$?$

a$.$ $$278$

b$.$ $$109\mathrm{.}02$

c$.$ $$135\mathrm{.}65$

d$.$ $$85$