In a ﬁnancial break-even calculation, the payback period of the project is equal to the life of the
project.

Name: In a ﬁnancial break-even calculation, the payback period of the project is equal to the life of the project.
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The financial break-even point is when a project's net present value (NPV) is zero, not when the payback period equals the project's life. The payback period is the time it takes to recover the initial investment, which may be shorter than the project's life.

In a ﬁNancial Break-Even Calculation, the Payback Period of the Project