Projects that begin with an initial investment and then are expected to generate a stream of cash inflows are considered ____ projects.
A) contingent
B) nonconventional
C) normal
D) non-normal

Question

Quizplus · Accepted Answer

Projects that generate a stream of cash inflows after an initial investment are considered normal projects. This is because they follow the typical pattern of initial investment followed by cash inflows over time. Contingent projects depend on the occurrence of a particular event and are not guaranteed to generate cash inflows. Nonconventional projects may have multiple cash inflows and outflows that occur at irregular intervals, making them difficult to evaluate. Non-normal projects do not follow the typical pattern of cash inflows and outflows and may have unpredictable returns.

Projects That Begin with an Initial Investment and Then Are