Which one of the following statements is correct?
A)An increase in the initial fixed assets required by a project will increase the accounting profit break-even point.
B)If a firm needs to lower a project's break-even points,it should lower the project's revenue estimate.
C)The NPV is zero at the accounting break-even point.
D)An increase in the tax rate will increase the accounting break-even point.
E)Depreciating project assets more rapidly will decrease the accounting break-even point.

Question

Quizplus · Accepted Answer

An increase in the initial fixed assets required by a project will increase the accounting profit break-even point because higher fixed costs need to be covered by revenues before profits are realized.

Which One of the Following Statements Is Correct