Asked by Fazena Jaikaran on Jul 07, 2024

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Business projects virtually always involve:

A) capital budgets.
B) early cash inflows and later outflows.
C) early cash outflows and later inflows.
D) quick payback periods.

Capital Budgets

Financial plans that allocate expenditures for acquiring and upgrading physical assets such as buildings and machinery.

Cash Outflows

The movement of money out of a business, project, or investment, typically related to expenses, purchases, or investments.

Cash Inflows

Money or assets that come into a company, typically through sales, financing, or investments.

  • Familiarize oneself with the essential theories and calculation procedures in capital budgeting, highlighting Net Present Value, Internal Rate of Return, Profitability Index, and the payback timeframe.
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EN
Eshna NagpalJul 13, 2024
Final Answer :
C
Explanation :
Business projects typically require upfront cash outflows for things like equipment or infrastructure, and then generate cash inflows later on as the project starts to generate revenue. This is often referred to as the "cash flow timeline" or "project cash flow." Capital budgets are one aspect of project finances, but they are not the only consideration. Quick payback periods may be attractive, but they are not always feasible or desirable for all projects.