Which pattern of cash flow stream is the most difficult to use when evaluating projects?
A) mixed stream
B) conventional flow
C) nonconventional flow
D) annuity

Question

Quizplus · Accepted Answer

Nonconventional flows are the most difficult to use when evaluating projects because they do not follow a consistent pattern and may include multiple changes in direction and magnitude of cash flows. This makes it harder to calculate an accurate net present value or internal rate of return. Mixed streams and annuities have more predictable cash flow patterns, and conventional flows have a consistent direction and magnitude of cash flows.

Which Pattern of Cash Flow Stream Is the Most Difficult