Q480
A project which have one series of cash inflows and results in one or more cash outflows is classified as
A.
abnormal costs
B.
normal cash flows
AnswerC.
abnormal cash flow
D.
normal costs
Answer: Option B
Solution
Answer: Option B
Solution:
A project which have one series of cash inflows and results in one or more cash outflows is classified as normal cash flows. Normal cash flow is the cash flow stream that comprises of initial investment outlay and then positive net cash flow throughout the project life. It is also called conventional cash flow stream.