In the Present-Value Break-Even the EAC Is Used To

question 51

Multiple Choice

In the present-value break-even the EAC is used to:

• A) determine the opportunity cost of investment.
• B) allocate depreciation over the life of the project.
• C) allocate the initial investment at its opportunity cost over the life of the project.
• D) determine the contribution margin to fixed costs.
• E) None of these.

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