The Production Department Is Proposing the Purchase of an Automatic

Multiple Choice

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 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 a estimated useful life of 10 years.

A) A & C
B) B & C
C) B
D) A only