Initial cash flows and subsequent operating cash flows for a project are sometimes referred to as
A) ordinary cash flows.
B) necessary cash flows.
C) relevant cash flows.
D) consistent cash flows.

Question

Quizplus · Accepted Answer

The initial cash flows and subsequent operating cash flows for a project are relevant cash flows as they are the cash flows that are directly related to the project and will impact its profitability. Ordinary and necessary cash flows are vague terms and do not specifically relate to project cash flows. Consistent cash flows may refer to cash flows that have a consistent pattern, but this does not necessarily relate to project cash flows.

Initial Cash Flows and Subsequent Operating Cash Flows for a Project