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A company in the growth phase of its product life cycle will normally have the following...

A company in the growth phase of its product life cycle will normally have the following pattern of cash flows

  • A. Negative cash flows from operations, negative cash flows from investing and positive cash flows from financing.

  • B. Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing.

  • C. Positive cash flows from operations, positive cash flows from investing and positive cash flows from financing.

  • D. Negative or positive cash flows from operations, negative cash flows from investing and negative cash flows from financing.

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Answer #1

Cashflows from operations may be Negative or positive, negative cash flows from investing as in growth phase investments will be made in long term and positive cash flows from financing as cash inflows will be received through financing.

Answer is Option B)

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