A proposed capital budgeting project has initial cash outflows, followed by cash inflows, which are then...
A proposed capital budgeting project has initial cash outflows, followed by cash inflows, which are then followed by more cash outflows. We call these types of cash flows:
Group of answer choices
None of these are correct.
non-normal cash flows.
mutually-exclusive cash flows.
normal cash flows.
reflective cash flows.
Homework Answers
Answer: Non-normal cash flows
Non-normal cash flows are also called as unconventional cash flows
in which the cash flow direction changes more than once.
The conventional or normal cash flow refers to the cash flows in
which there will be cash out flow initially followed by cash
inflows.
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A proposed capital budgeting project has initial cash outflows,
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A project has an initial cash outflow of $5,000, at time 0, and the following cash...
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Free Spirit Industries is evaluating a proposed capital budgeting project (project Sigma) that will require an...
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Blue Moose Home Builders is evaluating a proposed capital budgeting project (project Sigma) that will require an initial investment of $750,000 Blue Moose Home Builders has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because returns in percentage form are easier to understand and compare to required returns. Blue Moose Home Builders's WACC is...
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