Projects That Begin with an Initial Investment and Then Is

question 39

Multiple Choice

Projects that begin with an initial investment and then is expected to generate a stream of cash inflows is considered:

• A)a contingent project
• B)a nonconventional project
• C)a normal project
• D)a non-normal project

---

Definitions:

Savings Accounts

Deposit accounts held at financial institutions that provide a modest interest rate, allowing individuals to save money securely.

Deposit

A sum of money placed with a financial institution for safekeeping or to earn interest, often used to secure a financial obligation or as part of a financial transaction.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value, reflecting the time value of money.

Present Value

The present value is the present-day valuation of a future money sum or cash flow series, determined by a given rate of return.