Flashing question mark, erased drive, now unable to reinstal os x?

Hello, so i have a macbook from 2010. It recently started up with a white screen and showed a folder with a question mark that would flash.

I have gone through with the process of command+R, and i have tried to repair the disk and now i have just gone through to erase the disk (mac os extended journaled) i have tried to install os x. I am trying to run lion (10.7) it p op s up, i hit continue, the second pop u that displays "to download and restore, Mac OS X, your computers eligibility will be verified with Apple." I select continue. It starts to "load information" then closes leaving another pop-up; "An error occured while preparing the installation. Try running this application again." I have tried this multiple times. Turning the laptop off and on. No solution. Should i just take it to be repaired? If so what would an estimated cost be?