Question: RL Enterprises is deciding between two machines. Machine A costs $715,000, with revenues of $312,000 and cash expenses of $240,000. Machine B costs $684,000, with
RL Enterprises is deciding between two machines. Machine A costs $715,000, with revenues of $312,000 and cash expenses of $240,000. Machine B costs $684,000, with revenues of $309,000 and cash expenses of $204,000. Both have a 10-year life and no salvage value. RJ uses the straight-line method to compute depreciation. Based soley on the annual rate of return method, which machine is more desirable? Select answer from the options below Machine A and Machine B are equally desirable Machine B is more desirable than Machine A Neither Machine A nor Machine B is desirable Machine A is more desirable than Machine B
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