Assume a machine which has a useful life of only one$-$year costs $$2,000.$ Assume, also, that net profit $($not including interest cost$)$ from the output of this machine is expected to be $$200.$ If the firm finds it must borrow funds at an interest rate of $7$ percent, the firm should:

A$.$ not purchase the machine because the expected rate of return exceeds the interest rate.

B$.$ not purchase the machine because the interest rate exceeds the expected rate of return.

C$.$ purchase the machine because the expected rate of return exceeds the interest rate.

D$.$ purchase the machine because the interest rate exceeds the expected rate of return.