Using fiscal policy to stabilize the economy is difficult because rev: 06_13_2018 Multiple Choice potential income is known. the effects of policy changes are known with certainty. there are time lags involved in the use of fiscal policy. the size of the government debt doesn't matter.

Baldock inc. is considering the acquisition of a new machine that costs $420,000 and has a useful life of 5 years with no salvage value. the incremental net operating income and incremental net cash flows that would be produced by the machine are: incremental net operating income incremental net cash flows year 1 $61,000 $145,000 year 2 $67,000 $151,000 year 3 $78,000 $162,000 year 4 $41,000 $125,000 year 5 $83,000 $167,000 assume cash flows occur uniformly throughout a year except for the initial investment. the payback period of this investment is closest to: