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Hanley Company purchased a machine for $125.000 that will be depreciated on the straight line basis over a five year period with no salvage value.
Hanley Company 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. What is the payback period closest to? Multiple Choice 4 2 years 21 yoon Some investment projects require that a company expand its working capital at the initiation of a project to service the greater volume of business that will be generated. Assuming a project in which the increased working capital will no longer be required after the end of the project, under the net present value method. these changes in working capital should be treated as Multiple Choice both an vital cash outflow for which no decounting is necessary and a future cash now for which discounting is necessary future cash inflow for which discounting is necessary on initial cash outflow for which no discounting is necessary relevant to the net present value antysis
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