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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Definitions:

Omi And Winant

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A term referring to the period marked by the move from feudalism towards capitalism, industrialization, secularization, and the nation-state; represents the societal conditions and mindset resulting from these changes.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined primarily by competition in a free market.

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