Which of the following statements are identified with financial break-even point?
I.The present value of the cash inflows exactly offsets the initial cash outflow.
II.The payback period is equal to the life of the project.
III.The NPV is zero.
IV.The discounted payback period equals the life of the project.
A)I and II only
B)I and III only
C)II and IV only
D)I, II, and III only
E)I, III, and IV only

Question

Quizplus · Accepted Answer

The financial break-even point is when the NPV is zero, meaning the present value of cash inflows equals the initial outflow, and the discounted payback period equals the project's life.

Which of the Following Statements Are Identified with Financial Break-Even