Joe's Taco Hut Can Purchase a Delivery Truck for $20,000

Joe's Taco Hut can purchase a delivery truck for $20,000 and Joe estimates it will generate a net income (after taxes, maintenance and operating costs) of $4,000 per year.His other option is to go to work for someone else earning net income of $3,000 per year.He should:

A) purchase the truck if the real interest rate is less than 15%.
B) not purchase the truck if the real interest rate is greater than 1%.
C) purchase the truck if the real interest rate is greater than 5%.
D) purchase the truck if the real interest rate is less than 5%.