Question

5 For the net cash flow and cumulative cash flows shown, the value of x is nearest: Year 2 4 Net Cash Flow, S +13.000 -29,000 - 25,000 50,000 CCES +13.000 --16,000 41,000 +9000 $41,000 $-8,000 +1000 $-16,000 O $16,000

Answer 1

B. -8,000

If we add net cash flows, we will get cumulative cash flows. Like in year 1, cash flow and cumulative cash flow was 13,000. In the next year, cash flow was - 29,000 and so CCF was 13,000+ (-29,000) = -16000. And so on

In year 4, CCFwas 9000 and in year 5 CCF was 1000 so in that 5th year, there was a negative cash flow of 8000. So the answer is -8000