A small company bought a 250-hp compressor in 1998 for $3000 when the M&S equipment cost index

Question:

A small company bought a 250-hp compressor in 1998 for $3000 when the M&S equipment cost index had a value of 1061.9. If the exponent in the cost-capacity equation is 0.32 and the M&S index value was 1449.3 in 2008, the cost of a 500-hp compressor in 2008 was closest to:
(a) $3744
(b) $4094
(c) $4627
(d) $5110