The Economic Break-Even Point Is the Number of Units That

question 31

Multiple Choice

The economic break-even point is the number of units that must be sold each year over the life of a project in order for the NPV of that project to equal to _____.

• A) $0
• B) $1
• C) the present value of cash inflows
• D) the present value of investment

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Definitions:

Operation Of Law

Changes in rights or ownership that occur automatically due to established legal rules, without the need for action by the parties involved.

Monetary Payments

Transfers of money from one party to another as a form of compensation or settlement.

Damages

Financial compensation ordered by a court to a plaintiff for losses suffered due to the defendant's unlawful act or negligence.

Breach Of Contract

Not meeting any condition of a contract, be it in written or oral form, without an authentic legal reason.