MacBook Pro starts up with blinking folder and question mark in it. Is there a fix to this issue or has the HDD crashed for good?

I startup my mac and I see a white screen background with a folder icon in the center and a question mark blinking in the center. Called Apple and the rep says this is probably a HDD crash. Only solution is to take it into a Apple store and get a replacement HDD which would cost $300 and upwards. This mac book is about 15 months old and cost $1300. Needless to say I'm highly upset. Does anyone have a fix to this?

Flashing folder with question mark?
Go step by step and test.
http://support.apple.com/kb/ts1440
Startup Manager to select Startup disk.
http://support.apple.com/kb/HT1310
Repair Disk
Steps 2 through 8
http://support.apple.com/kb/PH5836
Reset PRAM.
http://support.apple.com/kb/PH4405
Reinstall OS X
http://support.apple.com/kb/PH10763?viewlocale=en_US

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