Which of the following appears to be the most suitable investment?
A)revenues cover fixed and variable costs.
B)investment breaks even in an accounting sense.
C)investment breaks even in an NPV sense.
D)revenues exceed cost of goods sold.

Question

Quizplus · Accepted Answer

Breaking even in an NPV sense means that the investment will generate enough cash flows over its lifetime to cover the initial investment and generate a positive return. This takes into account the time value of money and the cost of capital, making it the most comprehensive measure of profitability. The other options only address short-term or accounting-based measures of financial performance.

Which of the Following Appears to Be the Most Suitable