Breakeven Cash Inflow Refers to

question 81

Multiple Choice

Breakeven cash inflow refers to

• A) the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV > $0.
• B) the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV < $0.
• C) the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR < cost of capital.
• D) None of the above is correct.

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Definitions:

Operating Revenue

Income earned from a company's primary business activities, excluding non-operating income sources like investments.

Operating Expenses

Costs associated with the operation of a business, such as rent, utilities, and payroll, that are not directly tied to the production of goods or services.

Loss on Disposal

The financial loss recognized when the selling price of an asset is less than its carrying amount on the balance sheet.

Operating Expenses

Expenses incurred in the normal operations of a business, including costs such as rent, salaries, and utilities, but not including cost of goods sold.