True or false: Some projects, such as mines, have cash outflows followed by cash inflows, which are then followed by cash outflows, giving the project multiple rates of return.

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02-06-2022
Business

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True or false: Some projects, such as mines, have cash outflows followed by cash inflows, which are then followed by cash outflows, giving the project multiple rates of return.

Sagot :

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okpalawalter8 okpalawalter8 · Answer 1 · 2022-06-13T12:20:17-04:00

"Some projects, such as mines, have cash outflows followed by cash inflows....giving the project multiple rates of return." this statement is true. This is further explained below.

What is cash flow?

Generally, inflows and outflows of cash, particularly as it relates to liquidity.

In conclusion, It is possible to have multiple internal rates of return if future cash flows are both positive and negative.

True or false: Some projects, such as mines, have cash outflows followed by cash inflows, which are then followed by cash outflows, giving the project multiple rates of return.

Sagot :

What is cash flow?

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