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The production department is proposing the purchase of an automatic insertion machine. They have identified 3 machines and have asked the accountant to analyze them

The production department is proposing the purchase of an automatic insertion machine. They have identified 3 machines and have asked the accountant to analyze them to determine the best average rate of return.

Machine A Machine B Machine C
Estimated Average Income $40,000 $50,000 $75,000
Average Investment $300,000 $250,000 $500,000
a.

Machine B or C

b.

Machine C

c.

Machine A

d.

Machine B

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