87
QuizMultiple Choice

Home Ownership — Cumulative exam

Question 87 • Financial Math - MA2007

Which of the following is true?

Answer
A
net cash flow - cash outflow = cash inflow
B
net cash flow + cash outflow = cash inflow
C
net cash flow + cash inflow = cash outflow
D
cash inflow + cash outflow = net cash flow

Explanation

Net cash flow is calculated by subtracting cash outflow from cash inflow: net cash flow = cash inflow − cash outflow. Adding cash outflow to both sides gives net cash flow + cash outflow = cash inflow. Therefore, choice B is true.

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