Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Production Budget
A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budge…
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Investment projects fall within two types. What are they?

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Step 1

An investment project is a series of cash inflows and outpourings, normally beginning with a money outflow (the underlying speculation cost) trailed with money inflows as well as money outpourings in later (years) time.

Step 2

The investment projects are classified into two categories based on the cash flows nature as follows:

  • Conventional cash flow projects: These are the projects in which the cash flow sign will vary only one time. That initial cash outflow and further cash inflows in the coming periods or vice versa.

          Eg: -/++++ or +/-----

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