Suppose a firm is considering the purchase of a machine which when used will 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. not be undertaken because the rate of return is 7 percent less 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 2 percent greater than the interest rate
d. be undertaken because the rate of return is 7 percent greater than the interest rate
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