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In which stage would you typically expect to see large positive Investment Cash Flows?

A) Startup.
B) Profitable/Growing.
C) Mature/Steady.
D) Decline.

1 Answer

4 votes

Final answer:

During the expansion stage of the business cycle, you would typically expect to see large positive investment cash flows.

Step-by-step explanation:

In which stage would you typically expect to see large positive Investment Cash Flows? - Decline

In general, large positive investment cash flows are typically seen during the expansion stage of the business cycle. During this phase, the economy is growing, consumer spending is increasing, and businesses are experiencing higher demand for their goods and services. As a result, businesses may need to invest in additional physical capital, such as new equipment or facilities, to meet this increased demand.

For example, during a technology boom like the late 1990s, businesses became confident that investments in new technology would have a high rate of return, leading to large positive investment cash flows. This is because there was a high demand for technology products and services, and businesses needed to invest in new technologies to stay competitive in the market.

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