hard20 pts · first answer countsvaluationcapital-budgeting

Two kinds of break-even

A project breaks even on accounting profit at 8,000 units a year. Why is the volume needed for zero NPV usually higher?

A.Accounting profit already includes all cash outflowsB.NPV ignores depreciation and tax completelyC.NPV must also recover the cost of capital on the investmentD.Accounting break-even counts sales at a lower price

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Two kinds of break-even

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