_________________ Would Usually Represent a Net Cash Inflow at the Beginning

question 150

Multiple Choice

_________________ would usually represent a net cash inflow at the beginning of a project and an equal net cash outflow upon completion of the project.

• A) An increase in payables.
• B) An increase in inventory.
• C) An increase in receivables.
• D) An increase in fixed assets.
• E) An increase in receivables, coupled with an identical increase in payables.

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Definitions:

Future Cash Inflows

Expected cash receipts or revenues generated from business activities in future periods.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Internal Rate of Return

The metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Cash Outlay

The total amount of cash that is spent by a business or organization for certain purposes or activities, including investments or expenses.