Non-Conventional Cash Flows 

They refer to the cash flow pattern in which an initial cash outlay is. not followed by a series of inflows. Alternating inflows and outflows and an inflow followed by outflows are examples of non-conventional cash flow patterns. A classic example of such cash flow patterns is that of the purchase of an asset that generates cash inflows for a period of years is overhauled and again generates a stream of cash inflows for a number of years. To illustrate a machine purchased for Rs 1,000 generates cash inflows of Rs 250 each for five years. In the sixth year, an outlay of Rs 400 is required to overhaul the machine after which it generates cash inflows of Rs 250 for four years. Such a non-conventional pattern of cash flows is shown in Fig. 10.2


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