Which of the following cash flow patterns is NOT an unconventional cash flow pattern?
A) A positive initial cash flow is followed by negative future cash flows.
B) A cash flow pattern in which there are alternate inflows and outflows.
C) A negative initial cash flow is followed by positive future cash flows.
D) A cash flow stream looks similar to a conventional cash flow stream except for a final negative cash flow.

Question

Quizplus · Accepted Answer

An unconventional cash flow pattern involves changes in the direction of cash flows, such as switching from inflows to outflows or vice versa. Option C describes a conventional cash flow pattern, typical of investments where an initial outlay is followed by future positive returns.

Which of the Following Cash Flow Patterns Is NOT an Unconventional