Reference: 10-12 Hanley Company Purchased a Machine for $125,000 That Will Be

Reference: 10-12
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.
-The payback method measures:

A) the cash flow from an investment.
B) the economic life of an investment.
C) how quickly investment dollars may be recovered.
D) the profitability of an investment.

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