Question: Freestone Company is considering renting Machine Y to replace Machine X. It is expected that Y will waste less direct materials than does X. if

  1. Freestone Company is considering renting Machine Y to replace Machine X. It is expected that Y will waste less direct materials than does X. if Y is rented, X will be sold on the open market. For this decision, which of the following factors is (are) relevant? I. Cost of direct materials used. II. Resale value of Machine X

A. Both I and II

B. Neither I nor II

C. Only II

D. Only I

Choose the correct answer (multiple choice)

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