For this decision problem, which of the cash flows above are relevant? I, II, and III are all relevant Only II and III are relevant Only I and II are relevant Only I and III are relevant

A. I, II, and III are all relevant

B. Only II and III are relevant

C. Only I and II are relevant

D. Only I and III are relevant

Freestone Company is considering buying Machine B to replace Machine A. Both machines have the same remaining useful life and will perform the same tasks. However, it is expected that B will operate more efficiently than machine A, thereby decreasing the cost of utilities and also increasing product output. If B is purchased, A will be disposed of as rubbish. For this decision problem, which of the following factors is (are) relevant? I. Original cost of Machine A III. Contribution margin generated by the product output of each machine