A Project That Just Breaks Even on a Financial Basis

question 328

Multiple Choice

A project that just breaks even on a financial basis _______________.

• A) Does not pay back.
• B) Will exactly pay back by the end of the project.
• C) Will pay back prior to the end of the project.
• D) Has an IRR equal to 0 %.
• E) Has a profitability index of 2.

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Definitions:

Federal Government

The national government of a federal state, which holds the authority over matters that affect the entire country, distinct from state or local governments.

Percentage Point

A unit for measuring the difference between percentages, illustrating how much one percentage is higher or lower than another.

Distributed Equally

Refers to an allocation method where resources, wealth, or opportunities are evenly shared among all participants or groups involved.

Pre-Tax-And-Transfer Income

The amount of income individuals or households earn before taxes are deducted and government transfers are added.