Cash outflows are costs of project and are represented by___________?
Correct answer: A. Negative numbers
- A. Negative numbers
- B. Positive numbers
- C. Hurdle number
- D. Relative number
Explanation
Cash outflows reduce the project's net cash flow, so they are recorded as negative numbers in capital-budgeting calculations. Cash inflows are recorded as positive numbers.
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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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