Gisele is performing a make/buy study involving the retention or disposal of a 4-year-old machine that was to be in production for 8 years. It cost $500,000 originally. Without a market value estimate, she decided to use the current book value plus 20% for the market value. If DDB depreciation is applied, the market value estimate is closest to:

(a) $158,200

(b) $253,125

(c) $217,900

(d) $189,840