At the Break-Even NPV Point

question 7

Multiple Choice

At the break-even NPV point

• A) the present value of operating cash flows equals the initial amount invested.
• B) The NPV of the project is equal to zero.
• C) the project's IRR is equal to the project's required rate of return.
• D) all of the above

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Definitions:

Y-intercept

The point where a line crosses the y-axis on a graph, representing the value of the dependent variable when the independent variable is zero.

Simple Linear Regression

A statistical method that models the relationship between a dependent variable and one independent variable by fitting a linear equation to the observed data.

Response Variable

The variable in a study or experiment that is assumed to depend on or be affected by changes in another variable (often called the independent variable).

Explanatory Variable

A variable in a statistical model that is believed to cause or explain changes in the response variable.