The cash outflows are the 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
Project costs are cash outflows and are recorded as negative numbers in capital-budgeting analysis. Positive numbers normally represent cash inflows or benefits.
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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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