The NPV break-even level of sales will be higher than the accounting break-even level.

Name: The NPV break-even level of sales will be higher than the accounting break-even level.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The NPV break-even level of sales takes into account the time value of money and the cost of capital, while the accounting break-even level only considers fixed and variable costs. Therefore, the NPV break-even level of sales will require higher sales than the accounting break-even level.

The NPV Break-Even Level of Sales Will Be Higher Than