A project that just breaks even on a cash basis must have a zero NPV.

Name: A project that just breaks even on a cash basis must have a zero NPV.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Breaking even on a cash basis means that the project's cash inflows equal its cash outflows, but NPV (Net Present Value) also considers the time value of money. A project can break even on a cash basis but still have a positive or negative NPV depending on the discount rate and the timing of cash flows.

A Project That Just Breaks Even on a Cash Basis