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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 which of the proposals (if any) meet the companys policy of a minimum desired rate of return of 10% using the net present value method. Each of the assets has a estimated useful life of 10 years. ........................Machine A Machine B Machine C Estimated Average Income $40,000 $50,000 $75,000 Average Investment $300,000 $250,000 $500,000
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