Calculate the relevant cash flows for year 0
A)-£245,000.
B)-£240,000.
C)-£250,000.
D)-£330,000

Question

Quizplus · Accepted Answer

Without any further information or context, it is impossible to determine the exact cash flows for year 0. However, since all of the answer choices are negative (indicated by the "-" symbol), we can conclude that there is an outflow of cash in year 0. Out of the given choices, A (-£245,000) represents the highest outflow and therefore the best answer.

Calculate the Relevant Cash Flows for Year 0