## Unconventional Cash Flow

### Unconventional Cash Flow

### What is an 'Unconventional Cash Flow'

A series of inward and outward cash flows over time in which there is more than one change in the cash flow direction. This contrasts with a conventional cash flow, where there is only one change in cash flow direction. In terms of mathematical notation - where the - sign represents an outflow and + denotes an inflow - an unconventional cash flow would appear as -, +, +, +, -, + or alternatively +, -, -, +, -.

The term is particularly used in discounted cash flow (DCF) analysis. An unconventional cash flow is more difficult to handle in DCF analysis than conventional cash flow since it may have multiple internal rates of return (IRR), depending on the number of changes in cash flow direction.

### Explaining 'Unconventional Cash Flow'

In real-life situations, examples of unconventional cash flows are abundant, especially in large projects where periodic maintenance may involve huge outlays of capital. For example, a large thermal power generation project where cash flows are being projected over a 25-year period may have cash outflows for the first three years during the construction phase, inflows from years four to 15, an outflow in year 16 for scheduled maintenance, followed by inflows until year 25.

### Unconventional Cash Flow FAQ

#### What is a normal cash flow?

#### What are unconventional cash flows?

#### What is the direction that cash flows in a company?

#### What is the difference between projects with normal and non normal cash flows?

#### When a project has a positive net present value it has a profitability index?

#### What is considered a good cash flow?

### Further Reading

**Economic evaluation and decision method of oilfield development adjusting project**

en.cnki.com.cn [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**The impact of unconventional monetary policy on firm financing constraints: Evidence from the maturity extension program**

www.sciencedirect.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**Unconventional Monetary Policy and Household Debt: the Role of Cash-Flow Effects**

www.sciencedirect.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**Unconventional monetary policies: a re-appraisal**

www.elgaronline.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**A model of unconventional monetary policy**

www.sciencedirect.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**ECB unconventional monetary policy: Market impact and international spillovers**

link.springer.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**Can technology R&D close the unconventional gas performance gap?**

www.earthdoc.org [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**Unconventional wisdom on PSI, the appropriate discount rate for the tax shield**

papers.ssrn.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …

**The impact of unconventional monetary policy on the Italian economy during the sovereign debt crisis**

papers.ssrn.com [PDF]

… present value being more than zero may be the basic standard of the project feasibility.The unconventional cash flow distribution pattern … flow increment less than zero.For ensuring the long effects of project benefits,the accumulation cash increment flow being more …