The sales level that results in a project operating cash ﬂow exactly equal to zero is called:
A) Operational break-even.
B) Leveraged break-even.
C) Accounting break-even.
D) Cash break-even.
E) Financial break-even.

Question

Quizplus · Accepted Answer

The sales level that results in a project operating cash flow exactly equal to zero is called the cash break-even point. This means that at this level of sales, the project is generating just enough cash inflow to cover its cash outflows, including expenses and investments.

The Sales Level That Results in a Project Operating Cash