The cashflows invested in a project at t = 0 period is known as ...
Answers
Initial cash flow is the amount of money paid out or received at the start of a project or investment. This is generally a negative amount because projects often require a large initial capital investment by a company at the outset of a project that will generate positive cash flow over time. This initial cash flow is factored into the profitability of a project during the discounted cash flow analysis that is used to evaluate whether or not undertaking the project is profitable. Initial cash flow can also be called initial investment outlay.
Answer:
The cash flow invested in a project at t=0 period is known as Initial Cash Flow.
Explanation:
Initial Cash Flow is the money invested or received at the start of a project or investment. This amount is usually high and bears the most risk as it is a new project. Most people don't tend to invest in new projects hence this is usually done by the owner of the business firm.