Which of the Following Is a Limitation of Break-Even Time

question 144

Multiple Choice

Which of the following is a limitation of break-even time in assessing new-product development?

• A)All cash flows after the moment of break-even are ignored.
• B)Strategic and nonfinancial reasons for product development are not considered.
• C)Variances between one business to the next due to product life cycles and investment requirements.
• D)All of the answers are correct.

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Definitions:

Budget Constraint

The limitations on the purchase capabilities of an individual or entity, based on their available income and the prices of goods and services.

Income

The amount of money received by an individual or entity in exchange for labor or services, through investments, or from any other sources.

Nuts

Typically refers to dry, edible seeds or fruits with a high fat content, but in economics or general usage, it might not have a specialized meaning beyond its common understanding.

Berries

Small, pulpy, and often edible fruits, typically containing multiple seeds.