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Author Question: Which statement regarding normal cash flows is correct? (Read 64 times)

903f23fj0

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on: Aug 7, 2023
Which statement regarding normal cash flows is correct?

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Projects with “normal” cash flows must have two changes in the sign of the cash flows, e.g., from negative to positive to negative. If there are more than two sign changes, then the cash flow stream is “nonnormal.”


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The normal cash flows must begin with negative cash flows, switch to positive cash flows, and then remain positive.


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The “multiple IRR problem” can arise if a project’s cash flows are normal.


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Projects with normal cash flows can have only one real IRR.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by 903f23fj0 on Aug 7, 2023

Kevin5!

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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903f23fj0

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

pangili4

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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