In capital budgeting, cash outflows refer to the money spent on a project, such as initial investment or operating expenses. These outflows are shown as negative numbers in financial analysis because they represent cash going out of the business. In... Read More
In capital budgeting, cash outflows refer to the money spent on a project, such as initial investment or operating expenses. These outflows are shown as negative numbers in financial analysis because they represent cash going out of the business. In contrast, cash inflows (revenues) are shown as positive numbers.
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