The point where a project produces a rate of return equal to the required return is known as the:
A)point of zero profit.
B)internal break-even point.
C)accounting break-even point.
D)financial break-even point.
E)income break-even point.

Question

Quizplus · Accepted Answer

The financial break-even point is the point at which a project's cash inflows equal its cash outflows, resulting in a rate of return equal to the required return. This is the most relevant point for decision-making purposes, as it indicates when a project begins to generate positive returns for investors. The other options are either unrelated (point of zero profit) or less precise or comprehensive (accounting and income break-even points).

The Point Where a Project Produces a Rate of Return