Terminal cash flows are always positive because they result from the shutting down of a project with the sale of any assets with remaining value.

Question

Quizplus · Accepted Answer

Terminal cash flows can be positive or negative depending on factors such as the value of remaining assets, liabilities, and any termination costs associated with the project. It is possible for a project to have a negative net present value in part because of negative terminal cash flows.

Terminal Cash Flows Are Always Positive Because They Result from the Shutting