Examveda
Examveda

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

C. abnormal cash flow

D. normal costs

Answer: Option B

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. Samar Kumar
    Samar Kumar :
    3 years ago

    The correct answer is "non-normal cash flow "

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