Question

How is the net cash flow calculated in the cash flow method?

a.

By subtracting expected income from expected outgo

b.

By adding expected income to expected outgo

c.

By dividing expected income by expected outgo

d.

By multiplying expected income with expected outgo

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).By subtracting expected income from expected outgo Explanation:The net cash flow in the cash flow method is calculated by subtracting expected income from expected outgo.

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Q. How is the net cash flow calculated in the cash flow method?
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