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 the best average rate of return. Which machine has the best average rate of return?   Machine A Machine B Machine C Estimated average annual income $43,540 $72,900 $72,600 Average investment 311,000 243,000 484,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 16E: Covington Pharmacies has decided to automate its insurance claims process. Two networked computer...
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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 the best average rate of return. Which machine has the best average rate of return?

  Machine A Machine B Machine C
Estimated average annual income $43,540 $72,900 $72,600
Average investment 311,000 243,000 484,000
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