The break-even salvage value of a particular project is the salvage value necessary to:
A) offset any losses incurred by the subsidiary in a given year.
B) offset any losses incurred by the MNC overall in a given year.
C) make the project have zero profits.
D) make the project's return equal the required rate of return.

Question

Quizplus · Accepted Answer

The break-even salvage value is the value at which the project's return equals the required rate of return, ensuring that the project neither gains nor loses value relative to the expected return.

The Break-Even Salvage Value of a Particular Project Is the Salvage