A Project with Financing Type Cash Flows Is Typified by a Project

question 4

Multiple Choice

A project with financing type cash flows is typified by a project that has which one of the following characteristics?

• A)conventional cash flows
• B)cash flows that extend beyond the acceptable payback period
• C)a year or more in the middle of a project where the cash flows are equal to zero
• D)a cash inflow at time zero
• E)cash inflows which are equal in amount

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Definitions:

Consideration

An essential element in contract law, referring to something of value exchanged between parties as part of entering into a contract.

Beneficiary Modification

Changes made to the designated recipient of benefits or entitlements under a legal instrument such as a will or insurance policy.

Gifts

Voluntary transfers of property or funds from one person to another without any expectation of payment or compensation.

Fraud

Intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.