A project's net cash flows are typically cash inflows whereas a project's net investment is typically a cash outflow.

Question

Quizplus · Accepted Answer

Net cash flows represent the difference between cash inflows and cash outflows over a period of time, usually annually, for a project. Net investment, on the other hand, is the amount of cash a project requires as a one-time cash outflow. Therefore, net cash flows are typically cash inflows, whereas net investment is typically a cash outflow.

A Project's Net Cash Flows Are Typically Cash Inflows Whereas