The "break-even" cash flow is the point at which _____.

Question

Quizplus · Accepted Answer

The break-even cash flow is the point at which the present value of the cash inflows equals the present value of the cash outflows. This means that the business is not making a profit or a loss and is just breaking even. Therefore, option B is the correct answer. Option A is incorrect because it only takes into account the cost side of the equation and not the revenue side. Option C is incorrect because it refers to the hurdle rate and market rate, which are not relevant to the break-even point. Option D is also incorrect because it only mentions cash revenues and expenses without taking into account the time value of money.

The "Break-Even" Cash Flow Is the Point at Which _____