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

question 1

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 payback period for this investment? (Round your answer to the one decimal place.)

• A) 2.1 years.
• B) 2.3 years.
• C) 2.8 years.
• D) 4.2 years.

Understand the impact of changes in perceived asset risks on the loanable funds market and exchange rates.

Analyze how savings rates affect the supply of loanable funds, interest rates, exchange rates, and net exports.

Relate macroeconomic policies and political stability to interest rates, exchange rates, and net exports.

Understand the relationship between real interest rates, net capital outflow, and exchange rates.

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Definitions:

Well-Organized Business

A business entity that is structured and managed efficiently, leading to enhanced productivity, profitability, and goal attainment.

Potato Farmers

are agricultural producers specializing in growing potatoes as their primary crop.

Federal Agency

An organization part of the government of the United States that operates either independently or under the direct administration of federal executive departments.

Farm Subsidies

Governmental grants provided to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.