Breakeven Cash Inflow Refers to ________

question 26

Multiple Choice

Breakeven cash inflow refers to ________.

• A) the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV greater than zero
• B) the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV less than zero
• C) the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR less than zero cost of capital
• D) the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR equals zero

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Definitions:

Sources of Cash

Various origins from which a business or individual can obtain funds, including operations, financing, and investing activities.

Use of Cash

Describes the various ways a company or an individual applies their available cash, including operations, investments, and financing activities.

Price/Earnings Ratio

A valuation metric that compares a company's current share price to its per-share earnings, often used to gauge if a stock is over or undervalued.

High P/E Ratio

Indicates that a company's stock price is high relative to its earnings per share, suggesting that investors may expect higher earnings growth in the future.