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Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
If cash flows change signs once, the pattern is [...]. If cash flows change signs two or more times, the pattern is [...]
Answer
conventional

nonconventional.

Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
If cash flows change signs once, the pattern is [...]. If cash flows change signs two or more times, the pattern is [...]
Answer
?

Tags
#cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Question
If cash flows change signs once, the pattern is [...]. If cash flows change signs two or more times, the pattern is [...]
Answer
conventional

nonconventional.
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If cash flows change signs once, the pattern is conventional. If cash flows change signs two or more times, the pattern is nonconventional.

Original toplevel document

3. BASIC PRINCIPLES OF CAPITAL BUDGETING
to negative again (or even change signs several times). An investment that involved outlays (negative cash flows) for the first couple of years that were then followed by positive cash flows would be considered to have a conventional pattern. <span>If cash flows change signs once, the pattern is conventional. If cash flows change signs two or more times, the pattern is nonconventional. Several types of project interactions make the incremental cash flow analysis challenging. The following are some of these interactions: Indepe

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