Longterm capital budgeting proposals are normally expected to incur negative cash flows in the initial time period, but eventually they should generate positive cash flows.

Question

Long­term capital budgeting proposals are normally expected to incur negative cash flows in the initial time period, but eventually they should generate positive cash flows.

Quizplus · Accepted Answer

Long-term capital budgeting proposals involve investing money in a project or asset that is expected to generate returns over an extended period of time. It is common for these proposals to have negative cash flows in the initial period as the investment is made, but over time, as the project or asset generates income or savings, it should eventually result in positive cash flows.

Long­term Capital Budgeting Proposals Are Normally Expected to Incur Negative

Longterm Capital Budgeting Proposals Are Normally Expected to Incur Negative