Which of the following does NOT require ﬁnding the point where NPV = 0?
A) Calculating IRR.
B) Setting a bid price.
C) Determining the point where a ﬁrm is indifferent between accepting or rejecting a project.
D) Finding the ﬁnancial break-even point.
E) Finding the EAC.

Question

Quizplus · Accepted Answer

Finding the EAC (Equivalent Annual Cost) does not require finding the point where NPV = 0, as it is a measure of the cost of a project on an annual basis, calculated by dividing the total present value of costs by the number of years in the project's life. The other options, such as calculating IRR, setting a bid price, determining a firm's indifference point, and finding the financial break-even point, all require finding the point where NPV = 0.

Which of the Following Does NOT Require ﬁNding the Point