In General,a Project's Free Cash Flows Will Fall in One

question 59

True/False

In general,a project's free cash flows will fall in one of the following three categories: initial outlay,differential cash flows over the project's life,and the terminal cash flow.

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Definitions:

Annuity

A financial product, particularly used for retirement savings, that pays out a fixed stream of payments to an individual, typically after investment.

Contribution

An amount of money or assistance given to support a cause or for a common purpose.

Compounded Annually

The method of computing interest that includes the original principal amount and the interest accrued over prior periods each year.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often until retirement.