ECONOMICS

Detailed explanation-1: -The initial investment is the immediate cash outflow necessary to purchase the asset and put it into operating order. Q. One disadvantage of the payback period method is it ignores time value of money.

Detailed explanation-2: -Initial cash flow is the total money that is available when a project or business is in the planning stages. The figure includes any loans or investments made in the project. It is usually a negative figure since launching a business requires capital investment in the hopes of generating future income.

Detailed explanation-3: -An initial outlay refers to the initial investments needed in order to begin a given project.

Detailed explanation-4: -An initial investment is the starting amount of money that it takes to either open an account or establish a buy-in relationship. The term “initial investment” is primarily used in two distinct but related sectors: banking and long term investment brokering.

Detailed explanation-5: -INITIAL INVESTMENT COST means, as of the date of determination, an amount equal to the “Purchase Price” paid by Landlord to the Seller under the terms of the Purchase Agreement.