Hanley Company Has Purchased a Machine for $125,000 That Will

question 72

Multiple Choice

Hanley Company has purchased a machine for $125,000 that will be depreciated on the straight-line basis over a five-year period with no salvage value. The related cash flow from operations is expected to be $45,000 a year. These cash flows from operations occur uniformly throughout the year. (Ignore income taxes in this problem.)
-What is the simple rate of return on the initial investment?

• A) 16%.
• B) 24%.
• C) 28%.
• D) 36%.

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Definitions:

Anxiety And Depression

A mental health condition characterized by feelings of intense worry, sadness, or fear, often accompanied by physical symptoms.

Autonomy

Having control over your actions and life.

Peak Experience

A term used in psychology to describe a moment of intense joy, wonder, or euphoria, often leading to a feeling of fulfillment or transcendence.

Competence

The ability of an individual or organization to effectively perform or execute a particular task or job.