A project with financing type cash flows is typified by a project that has which one of the following characteristics?
A) Conventional cash flows
B) Cash flows that extend beyond the acceptable payback period
C) One year or more in the middle of a project where the cash flows are equal to zero
D) A cash inflow at Time 0
E) Cash inflows that are equal in amount

Question

A project with financing type cash flows is typified by a project that has which one of the following characteristics? 
A) Conventional cash flows 
B) Cash flows that extend beyond the acceptable payback period 
C) One year or more in the middle of a project where the cash flows are equal to zero 
D) A cash inflow at Time 0 
E) Cash inflows that are equal in amount

Quizplus · Accepted Answer

Financing type cash flows typically involve an initial cash inflow at Time 0, representing the acquisition of funds or investment capital, which is opposite to the conventional investment cash flows that start with an outflow.

A Project with Financing Type Cash Flows Is Typified by a Project