When evaluating the timing of a project's projected cash flows, a financial manager is analyzing:
A) the amount of each expected cash flow.
B) only the start-up costs that are expected to require cash resources.
C) only the date of the final cash flow related to the project.
D) the amount by which cash receipts are expected to exceed cash outflows.
E) when each cash flow is expected to occur.

Question

Quizplus · Accepted Answer

When evaluating the timing of a project's projected cash flows, a financial manager analyzes when each cash flow is expected to occur. This is important because it helps in determining when the project will generate cash inflows and outflows, which is essential for financial planning and decision-making. The other options listed (A, B, C, D) do not fully capture the essence of cash flow timing analysis.

When Evaluating the Timing of a Project's Projected Cash Flows