When evaluating a project in which a ﬁrm might invest, the size but not the timing of the cash ﬂows
is important.

Question

Quizplus · Accepted Answer

Both the size and timing of cash flows are important in evaluating a project. A project with large cash flows is favorable, but if those cash flows are not received in a timely manner or are heavily front-loaded or back-loaded, it can impact the project's profitability and overall value. Therefore, both size and timing are critical considerations in evaluating project investments.

When Evaluating a Project in Which a ﬁRm Might Invest