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 [...]
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 [...]
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 [...]
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a conventional pattern
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Open it 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
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3. BASIC PRINCIPLES OF CAPITAL BUDGETING an initial outflow followed by a series of inflows. In a nonconventional cash flow pattern, the initial outflow is not followed by inflows only, but the cash flows can flip from positive to negative again (or even change signs several times). <span>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. If cash flows change signs once, the pattern is conventional. If cash flows change signs two or more times, the pattern is nonconventional.
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