What is meant by cash flow streams in finance?

Cash flow streams in finance refer to the series of cash inflows and/or outflows that occur at different intervals over time. The concept encompasses the timing and amounts of these cash flows, which can significantly impact investment decisions, valuations, and financial planning. Option C specifically describes this by acknowledging that cash flows can consist of two or more payments made at different times, highlighting the importance of the timing and frequency of these cash flows in assessing their value and implications for financial management.

The other options do not fully capture the concept of cash flow streams. A lump sum received at maturity, for instance, refers to a single payment rather than a series of cash flows over time. Similarly, cash flow analysis between two entities is more about the relationship or comparison of cash flows rather than the actual streams themselves. Regular deposits made into an account can signify a type of cash flow but do not encapsulate the broader idea of diverse cash flow streams that can occur at varying intervals or amounts. Therefore, recognizing that cash flow streams are about multiple payments at different points in time is essential for understanding their role in finance.