If a company purchases a new plant it would be considered a(n) _________ cash flow.

Question

Quizplus · Accepted Answer

The purchase of a new plant would be considered an investment cash flow, as it involves the acquisition of a long-term asset with the intention of generating future returns.Operating cash flows refer to day-to-day operations, pro forma cash flows are projections of future cash flows, financing cash flows involve raising or repaying capital, and sales cash flows refer to revenue generated from selling products or services.

If a Company Purchases a New Plant It Would Be