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1 FINANCE MCQS

Cash flows that have more than one change in sign are called ____________?

  • Non-normal cash flow
  • Normal cash flow
  • Normal costs
  • Non-normal costs
Correct Answer: A. Non-normal cash flow

Detailed Explanation

Cash flows that switch from positive to negative (or vice versa) more than once during a project’s life are called non-normal cash flows. This usually happens in projects with large maintenance or shutdown costs after initial inflows.

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