In general,a project's free cash flows will fall in one of the following three categories: initial outlay,differential cash flows over the project's life,and the terminal cash flow.

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This statement is true. The free cash flows of a project can typically be broken down into these three categories: the initial outlay, which includes all of the upfront costs associated with starting the project; the differential cash flows over the life of the project, which represent the incremental cash flows that the project generates during its operation; and the terminal cash flow, which is the cash flow generated by the project at the end of its life or when it is sold or otherwise disposed of.

In General,a Project's Free Cash Flows Will Fall in One