A conventional cash flow is defined as a series of cash flows where:
A) The total of the cash flows is positive.
B) All of the cash flows are positive.
C) The sum of the cash flows is equal to zero.
D) The present value of the cash flows is equal to zero.
E) Only the initial cash flow is negative.

Question

Quizplus · Accepted Answer

A conventional cash flow involves an initial outlay (negative cash flow) followed by a series of positive cash inflows. This is typical for investment projects where the initial investment is followed by returns over time.

A Conventional Cash Flow Is Defined as a Series of Cash