Question: Can a project have negative cash flows for the first few years before having positive cash flows ?

Can a project have negative cash flows for the first few years before having positive cash flows ?

Step by Step Solution

3.51 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Yes a project can indeed have negative cash flows for the first few years before turning positive This situation is quite common in capitalintensive p... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!