The Production Department Is Proposing the Purchase of an Automatic

question 2

Multiple Choice

The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and has asked the accountant to analyze them to determine the best average rate of return. $$\begin{array} { | l | l | l | l | } \hline & \text { Machine } A & \text { Machine B } & \text { Machine C } \\\hline \text { Estimated average income } & \$ 40,000 & \$ 50,000 & \$ 75,000 \\\hline \text { Average investment } & \$ 300,000 & \$ 250,000 & \$ 500,000 \\\hline\end{array}$$

• A) Machine B
• B) Machine C
• C) Machine B or C
• D) Machine A

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Definitions:

Privileges and Immunities Clause

A provision in the U.S. Constitution ensuring that citizens of each state are entitled to the privileges and immunities of citizens in the several states.

Commercial Activities

are activities undertaken by businesses or individuals for the purpose of generating profit or revenue.

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A clause in the United States Constitution that requires each state to recognize and respect the judicial proceedings, public records, and legislative acts of every other state.

Judicial Decision

A ruling or determination made by a judge or court regarding a legal matter or case.