Occasionally projects may have positive initial cash flows.Such projects:
A) are like lending money.
B) are like borrowing money.
C) have no IRR.
D) their IRR increases as the cost of capital increases.

Question

Quizplus · Accepted Answer

Projects with positive initial cash flows are akin to borrowing money because the project receives cash upfront and pays it back over time, similar to a loan.

Occasionally Projects May Have Positive Initial Cash Flows