Which of the following statements generally apply to the cash flows of a financing type project?
I.nonconventional cash flows
II.cash outflows exceed cash inflows prior to any time value adjustments
III.cash for services rendered is received prior to the cash that is spent providing the services
IV.the total of all cash flows must equal zero on an unadjusted basis
A)I only
B)I and III only
C)II and IV only
D)I, II, and III only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

The cash flows of a financing type project are nonconventional, meaning that they do not follow the typical pattern of cash inflows exceeding cash outflows over the life of the project. Instead, cash outflows may exceed cash inflows prior to any time value adjustments. Additionally, cash for services rendered is often received prior to the cash that is spent providing the services. Finally, the total of all cash flows must equal zero on an unadjusted basis.

Which of the Following Statements Generally Apply to the Cash