When the operating cash flow of a project is equal to zero, the project is operating at the:
A) maximum possible level of production.
B) minimum possible level of production.
C) financial break-even point.
D) accounting break-even point.
E) cash break-even point.

Question

Quizplus · Accepted Answer

When the operating cash flow of a project is equal to zero, it means that the project is generating just enough cash to cover its operating expenses and capital expenditures, without generating profit or loss. This is referred to as the cash break-even point.

When the Operating Cash Flow of a Project Is Equal