Which one of these is most associated with an IRR of negative 100 percent?
A) Degree of operating leverage
B) Accounting break-even point
C) Contribution margin
D) Simulation analysis
E) Cash break-even point

Question

Quizplus · Accepted Answer

The cash break-even point is the level of sales at which a project's cash inflows will just equal its cash outflows, resulting in an IRR of zero. If the IRR is negative 100 percent, it means the project's cash inflows cannot even cover its cash outflows, indicating a complete loss on investment. Therefore, E - Cash break-even point is most associated with an IRR of negative 100 percent.

Which One of These Is Most Associated with an IRR