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 outflow (negative cash flow) followed by a series of positive cash inflows.

A Conventional Cash ﬂOw Is Deﬁned as a Series of Cash