Which of the following is true regarding projects with non-normal cash flows?
A)A project has non-normal cash flows when all of the cash flows have positive signs after the initial cash flow.
B)A project has non-normal cash flows when all of the cash flows have negative signs.
C)A project has non-normal cash flows when all of the cash flows have positive signs after the year 2.
D)A project has non-normal cash flows when the signs of the cash flows change more than once.

Question

Quizplus · Accepted Answer

A project has non-normal cash flows when the signs of the cash flows change more than once. This means that the cash flows could be positive in some periods and negative in others, creating non-normality in the cash flows. Options A, B, and C are not correct as they do not reflect the concept of non-normal cash flows.

Which of the Following Is True Regarding Projects with Non-Normal