A project with IRR = -100% is operating at the __________ break-even point.
A) Cash.
B) Accounting.
C) Financial.
D) Sales.
E) Leveraged.

Question

Quizplus · Accepted Answer

A project with an IRR (Internal Rate of Return) of -100% indicates that it is not generating any return on investment but rather losing all the invested capital. This situation corresponds to the cash break-even point, where the project is not making or losing cash, implying it's just able to cover its cash expenses.

A Project with IRR = -100% Is Operating at the __________