If the Level of Sales Is Less Than That Calculated

question 53

Multiple Choice

If the level of sales is less than that calculated as the NPV break-even level, then the:

• A)project will break even only in accounting terms.
• B)project's NPV will be greater than zero but less than the opportunity cost of capital.
• C)project will have a negative NPV.
• D)discount rate should be reduced.

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