The analysis technique that finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment is referred to as:
A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NP
D) future value (FV).
E) currency rate analysis (CRA).

Question

Quizplus · Accepted Answer

The technique described in the question is the break-even analysis (BEA), which helps determine the point at which the cumulative cash flow from a project equals the initial and ongoing investment. Return on investment (ROI) measures the profitability of an investment, net present value (NPV) calculates the current value of future cash flows, future value (FV) calculates the value of an investment at a future date, and currency rate analysis (CRA) assesses the impact of currency fluctuations on investments. Therefore, B is the correct answer.

The Analysis Technique That Finds the Amount of Time Required