The Economic Break-Even Point of a Project Can Be Found

question 54

Multiple Choice

The economic break-even point of a project can be found by:

• A) setting the discount rate equal to the DOL.
• B) solving for the annual sales that will equate total revenue with total cost.
• C) solving for the annual sales that will give the project an NPV of zero.
• D) solving for the level of sales that will give the project an IRR of zero.

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