Generally, from an investor’s point-of-view, time zero is synonymous with A : the end of an...

Generally, from an investor’s point-of-view, time zero is synonymous with

A : the end of an investment period.

B : a negative cash flow.

C : the date at which interest earned has completely depleted.

D : a positive cash flow.

Solutions

Expert Solution

Solution:

Time zero is the time when an investor invests in the financial assets and negative cash flow is generated. Suppose an investor purchases a share today then it can be said that the investor will have a negative cash flow today at time zero.

Hence the correct option is B ) a negative cash flow

Option A is incorrect as time zero is the start of an investment period

Option C is incorrect as time zero does not say about that

Option D is the opposite of B hence incorrect

jeff jeffy answered 1 year ago

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