Cash flow from investing when averaged over an extended period of time would normally be expected to be negative (i.e. net outflow).

Question

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Investing activities typically involve spending money on long-term assets such as property, plant, and equipment or investments in other companies. These investments usually require a large initial outlay of cash and generate cash inflows over time. However, when averaged over an extended period of time, the cash outflows from investing activities are typically larger than the cash inflows, leading to a negative net cash flow from investing.

Cash Flow from Investing When Averaged Over an Extended Period