The production department of Kerch Enterprises is proposing the purchase of an automaticinsertion machine. It has identified three machines and has asked the accountant to analyze themto determine which one has the best accounting rate of return on average investment.Machine AEstimated annual accounting income$45,500Average investment$350,000Machine BMachine C$67,500$72,800$450,000$260,000Which one has the best accounting rate of return on average investment (AKA average rate ofreturn).A. Machine AC. Machine CB. Machine BD. Machines B and C have the same preferred payback period.

To determine which machine has the best accounting rate of return on average investment, we need to…

Answered: The production department of Kerch…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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None

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