John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $15,000 at the end of 10 years. He believes that he should earn an investment yield of 10 percent annually on this investment. The asking price for the lot is $7.000. Should he buy it? Yes, because the present value of the lot is $5,783.15 Yes, because the present value of the lot is $7.000, which is less than the future value No, because the present value of the lot indicates a return of 6% No, because the present value of the lot is $5,783.15