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A

Anonymous

Dec 11, 2024

When projecting future cash flows of an investment​ a. cash inflows and outflows are treated​ separately, rather than being netted

When projecting future cash flows of an investment:
a. Are cash inflows and outflows treated separately rather than being netted together?
b. Are cash flows projected by accounting personnel alone, without considering input from other departments?
c. Do cash flows include depreciation?
d. Is the initial investment considered a significant cash outflow that is treated separately from all other cash flows?

3 Answers

A
Anonymous

Feb 22, 2025

When projecting future cash flows of an investment the initial investment is a significant cash outflow that is treated separately from all over cash flow. This is not cash that flows into the business but cash used to prop the business up to begin it.

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