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

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

Only I

Only II

Both I and II

Neither I nor II

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