A farmer wants to install a soil sensor system on $1,200$ acres of her farm. The system is

expected to improve per$-$acre net revenue by $$14$ due to higher yields, less water usage, and

improved efficiency of applied fertilizers. The farmer requires a $7\%($pre$-$tax$)$ rate of return.

The marginal tax rate is expected to stay at $20\%.$ Inflation is $1\%$ and there is a $4\%$ risk

premium. What is the present value of after$-$tax net returns in year $7?$

$$7,984$

$$7,585$

$$14,410$

$$7,447$

None of the answers are correct