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 one has the best average rate of return.Line Item DescriptionMachine AMachine BMachine CEstimated average income$47,060.44 $72,961.50 $73,785.60 Average investment336,146.00 243,205.00 491,904.00 a. Machine Cb. Machine Ac. Machines B and C have the same preferred average rate of return.d. Machine B

In this question, we will calculate the average rate of return, For determining the average rate of…

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Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 43P: The Port Authority sells a wide variety of cables and adapters for electronic equipment online. Last...

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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 one has the best average rate of return.

Line Item Description	Machine A	Machine B	Machine C
Estimated average income	$47,060.44	$72,961.50	$73,785.60
Average investment	336,146.00	243,205.00	491,904.00

a. Machine C

b. Machine A

c. Machines B and C have the same preferred average rate of return.

d. Machine B

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