The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and have asked the accountant to analyze them to determine which of the proposals (if any) meet or exceed the company's policy of a 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 identified the following data:

Machine A Machine B Machine C

Present value of future cash $305,000 $295,000 $300,000

flows computed using 10%

rate of return

Amount of initial investment $300,000 $300,000 $300,000

Which of the investments are acceptable?

Question 4 options:

Machines A & C

MachinesB & C

Machine B only

Machine A only