Question
Conventional versus nonconventional cash flow streams The net annual cash flows for a capital expenditure proposal can be classified as either conventional (normal) or nonconventional
Conventional versus nonconventional cash flow streams
The net annual cash flows for a capital expenditure proposal can be classified as either conventional (normal) or nonconventional (nonnormal). The following table lists the net annual cash flows for five proposed projects.
| Project | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
|---|---|---|---|---|---|
| A | $127,520 | $17,625 | $23,745 | $65,340 | $32,175 |
| B | $275,150 | $53,125 | $61,135 | $71,900 | $96,325 |
| C | $135,750 | $28,120 | $43,935 | $52,775 | $67,835 |
| D | $317,675 | $70,745 | $88,880 | $95,425 | $13,735 |
| E | $195,985 | $26,450 | $49,735 | $39,510 | $58,275 |
Which project or projects exhibit a nonconventional cash flow stream?
Project B only
Project D only
Projects A, C, and E
Project A only
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How To Build Your Financial Advisory Business And Sell It At A Profit Creating Running And Chasing Out Of Your Practice
Authors: Al Depman
1st Edition
0071621571,007162158X
