Cash inflows are revenues of project and are represented by__________?
Correct answer: D. Positive numbers
- A. Hurdle number
- B. Relative number
- C. Negative numbers
- D. Positive numbers
Explanation
Cash inflows add money to a project and are conventionally recorded as positive numbers, while cash outflows are recorded as negative numbers. This sign convention is used in NPV and other capital-budgeting calculations.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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