Projects Having Higher Cash Inflows in the Early Years Tend

question 123

True/False

Projects having higher cash inflows in the early years tend to be less sensitive to changes in the cost of capital and are therefore often acceptable at higher discount rates compared to projects with higher cash inflows that occur in the later years.

---

Definitions:

Freight Charges

Costs incurred for transporting goods from one place to another by sea, air, or land.

Trade Discount

A reduction in the listed price of goods or services offered by sellers to buyers in a commercial transaction.

Customer Discount

A reduction in the price of goods or services offered to customers, usually to encourage prompt payment or increase sales volume.

Trade Discounts

A reduction in the listed price of a product or service, offered by sellers to buyers in the commercial market.