The financial break-even point is described as the sales quantity that causes the _____ of a project to equal zero.
A) Operating cash flow.
B) Net income.
C) Pre-tax income.
D) Net present value.
E) Total cash flows.

Question

Quizplus · Accepted Answer

The financial break-even point is described as the sales quantity that causes the Net Present Value (NPV) of a project to equal zero. This is because the NPV calculation takes into account the time value of money, incorporating all cash inflows and outflows associated with the project, to determine the point at which the project neither loses nor gains value.

The Financial Break-Even Point Is Described as the Sales Quantity