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The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them

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The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which of the proposals (if any) meets or exceeds the company's policy ofa minimum desired rate of return of 10% using the net present value method. Each of the assets has an estimated useful life of 10 years. The accountant has identied the following data: Machine A Machine B Machine C Present Value of future cash ows computed $305,000 $295,000 $300,000 using 10% rate of return Amount of initial investment 300,000 300,000 300,000 Which of the investments are acceptable? 0a. Machines B and C Ob. MachinzsAandC 0:. Machine B only 0d. Machine A only

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