In Cash Flow Calculations,cash Flow Sign Convention Requires Us to

question 36

Multiple Choice

In cash flow calculations,cash flow sign convention requires us to

• A) assign a positive sign in front of cash inflows and a negative sign in front of cash outflows.
• B) assign a negative sign in front of cash inflows and a positive sign in front of cash outflows.
• C) assign a positive sign in front of both cash inflows and cash outflows.
• D) assign no signs. None of the cash flows need signs assigned to them.

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Definitions:

SOCl2

Thionyl chloride, a reactive chemical compound used in the synthesis of acid chlorides from carboxylic acids.

Organic Compound

A chemical compound containing carbon atoms bonded to hydrogen atoms in a structure.

Cyclopentanecarboxylic Acid

An organic compound characterized by a five-membered ring structure bonded to a carboxylic acid group, often involved in the synthesis of pharmaceuticals and fine chemicals.

Thionyl Chloride

A reactive chemical compound used for converting alcohols into chlorides and as a reagent in various organic synthesis reactions.