Which of the Following Is NOT a Correct Statement Regarding

question 137

Multiple Choice

Which of the following is NOT a correct statement regarding break-even?

• A) Accounting break-even is the sales level that results in zero project net income.
• B) The cash break-even is the sales level that results in zero OCF.
• C) The financial break-even is the sales level that results in zero NPV.
• D) If there is depreciation the cash break-even will exceed the accounting break-even.
• E) Of the three break-evens, the financial break-even point is typically the highest.

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The process of explaining or understanding the meaning of something, such as a piece of literature, a concept, or an event.