You are the manager of a pharmaceutical company and are considering what type of laptops to buy for your sales representatives to take with them on their calls. You can buy fairly inexpensive (and less powerful) older machines for about $2,500 each. These machines will be obsolete in three years and are expected to have an annual maintenance cost of $250. You can buy newer and more powerful laptops for about $4,000 each. These machines will last five years and are expected to have an annual maintenance cost of $100. The company has an effective tax rate of 25%. If your cost of capital is 15%, which option would you pick and why?