What Is the Approximate Economic Break-Even Sales for a Project

question 62

Multiple Choice

What is the approximate economic break-even sales for a project costing $4,000,000 and generating cash flows according to .30 *sales - $450,000? Assume the project will last 10 years and require a discount rate of 12%.

• A) $2,093,654
• B) $2,359,047
• C) $3,859,798
• D) $13,783,333

---

Definitions:

Indirect Sequence

A communication strategy that presents supporting details and evidence before revealing the main idea or conclusion.

Neutral-News Messages

Communications that are intended to inform without showing bias or eliciting strong emotional reactions.

Inductive Sequence

A logic sequence that builds from specific instances to a general conclusion, often used in reasoning or in creating narratives.

Supporting Details

Information or evidence provided in a text to explain, prove, or reinforce the main point or argument.