The cash inflows are the 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 represent revenues or receipts entering the project and are recorded as positive cash flows. Cash outflows, such as the initial investment, are recorded as negative 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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