Blumberg Industries has just completed its analysis of a proposed project. The results show that if the project is accepted, the ﬁrm will lose an amount of money which is exactly equal to their initial
Investment in the project. This means that:
A) The ﬁrm should accept the project as long as they are conﬁdent of the assumptions used in the analysis.
B) The ﬁxed costs per unit are exactly equal to the contribution margin at the projected level of sales.
C) Sales are estimated at the ﬁnancial break-even point.
D) The estimated cash ﬂow is equal to the depreciation expense.
E) The project has a discounted payback period exactly equal to the life of the project.

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The Answer of Blumberg Industries has just completed its analysis of a proposed project. The results show that if the project is accepted, the ﬁrm will lose an amount of money which is exactly equal to their initial
Investment in the project. This means that:
A) The ﬁrm should accept the project as long as they are conﬁdent of the assumptions used in the analysis.
B) The ﬁxed costs per unit are exactly equal to the contribution margin at the projected level of sales.
C) Sales are estimated at the ﬁnancial break-even point.
D) The estimated cash ﬂow is equal to the depreciation expense.
E) The project has a discounted payback period exactly equal to the life of the project.

Blumberg Industries Has Just Completed Its Analysis of a Proposed