Graphically, the break-even value for any one of the input parameters to a project is captured by
A)the slope of the project's sensitivity graph.
B)y-axis intercept of the graph of present worth as a function of that input parameter.
C)x-axis intercept of the graph of present worth as a function of that input parameter.
D)inverse of the slope of the graph of present worth as a function of that input parameter.
E)the ratio of the vertical intercept to horizontal intercept of the project's sensitivity graph.

Question

Quizplus · Accepted Answer

The break-even value for an input parameter is graphically represented by the x-axis intercept of the graph of present worth as a function of that input parameter. This is because the break-even point occurs where the present worth equals zero, which is found at the x-axis intercept.

Graphically, the Break-Even Value for Any One of the Input