The point where a project produces a rate of return equal to the required return is known as the:
A) Point of zero operating leverage.
B) Cash break-even point.
C) Accounting break-even point.
D) Financial break-even point.
E) Internal break-even point.

Question

Quizplus · Accepted Answer

The financial break-even point is where a project generates a return equal to the required return, ensuring that the project's net present value (NPV) is zero and investors receive their expected rate of return.

The Point Where a Project Produces a Rate of Return