Hua Xing Runs a Lawn Care Service

Hua Xing runs a lawn care service. Buying an additional riding lawn mower will cost $3,000 but would allow her firm to earn $1,000 of additional revenue each year for the next four years. She expects marginal efficiency of capital to be at least 10%. Which statement is an accurate description of this investment opportunity?

A) Hua Xing should make the investment because turning $3,000 into $4,000 provides a rate of return of 33%.
B) Hua Xing should not make the investment because it provides only a 5.16% return on investment.
C) Hua Xing should not make the investment because it has a negative net present value.
D) Hua Xing should make the investment because the internal rate of return exceeds 10%.