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Which of the following is an example of a cash outflow?
a. The amount of initial investment in an asset
b. Future savings in ongoing cash operating costs from an investment
c. The future residual value of the asset
d. Future cash revenue generated from an investment

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Nyctalus

Answer: Option A

Explanation: The amount of cash disbursed by the company in a specified time period, generally a year, is called cash outflow. In simple words, cash outflow is the amount of cash that left the company in the form of investments, operating expenses or other payments etc.

Initial investment in a project is a cash outflow that will further result in cash inflows in form of returns.

Thus, option A is correct.

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