If the Level of Sales Is Less Than That Calculated

question 48

Multiple Choice

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

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

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