When a project or investment has a cash flow pattern that changes sign more than once, such as starting with a negative cash outflow, then turning positive and staying positive, it is called a non-normal cash flow. In contrast, normal... Read More
When a project or investment has a cash flow pattern that changes sign more than once, such as starting with a negative cash outflow, then turning positive and staying positive, it is called a non-normal cash flow.
In contrast, normal cash flows start with an initial outflow (negative) followed by all positive inflows. Non-normal cash flows are common in projects that require additional investments later.
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