Suppose a Firm Is Considering the Purchase of a Machine

Suppose a firm is considering the purchase of a machine which would increase its total revenues by $10,000 for the year. The machine costs $8,000 and has a useful life of one year. The interest rate is 20 percent. This investment should

A) be undertaken because the rate of return is 2 percent greater than the interest rate.
B) be undertaken because the rate of return is 5 percent greater than the interest rate.
C) be undertaken because the rate of return is 7 percent greater than the interest rate.
D) not be undertaken, because the rate of return is 7 percent less than the interest rate.