A Conventional Cash Flow Is Defined as a Series of Cash

question 94

Multiple Choice

A conventional cash flow is defined as a series of cash flows where:

• A) The total of the cash flows is positive.
• B) All of the cash flows are positive.
• C) The sum of the cash flows is equal to zero.
• D) The present value of the cash flows is equal to zero.
• E) Only the initial cash flow is negative.

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Definitions:

Complete Performance

The full and exact fulfillment of all terms and conditions as outlined in a contract or agreement.

Unconditional Offer

An offer made by one party to another that requires no additional conditions or stipulations to be met for acceptance.

Tender

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.

Tendered

Offered formally or presented for acceptance, like a payment or a resignation.