Mark Is Considering Spending $25,000 on a Farm Tractor That

Mark is considering spending $25,000 on a farm tractor that will increase his crop yield and bring additional revenues of $4,000 for each of the next seven years. Mark should:

A) buy the tractor because its benefits of $28,000 outweigh its costs of $25,000.
B) buy the tractor because inflation will reduce the value of future cash flows.
C) use present discounted value analysis to decide whether the tractor is a good investment.
D) not buy the tractor because the payback period extends beyond three years.