Freestone Company is considering buying Machine B to replace Machine A. Both machines have the same remaining useful life and will perform the same tasks. However, it is expected that B will operate more efficiently than machine A, thereby decreasing the cost of utilities and also increasing product output. If B is purchased, A will be disposed of as rubbish. For this decision problem, which of the following factors is (are) relevant? I II III Original cost of Machine A Cost of utilities used by each machine Contribution margin generated by the product output of each machine For this decision problem, which of the cash flows above are relevant? Only I and III are relevant I, II, and III are all relevant Only I and II are relevant Only II and III are relevant

Freestone Company is considering buying Machine B to replace Machine A. Both machines have the same remaining useful life and will perform the same tasks. However, it is expected that B will operate more efficiently than machine A, thereby decreasing the cost of utilities and also increasing product output. If B is purchased, A will be disposed of as rubbish. For this decision problem, which of the following factors is (aro) relevant? I. Original cost of Machine A II Cost of utilities used by each machine III. Contribution margin generated by the product output of each machine For this decision problem, which of the cash flows above are relevant? Only 1 and III are colevant 1, 11 , and III are all relevant Only I and II are relevant Only II and III are relevant