Which of the following characteristics relate to the cash break-even point for a given project?
I.The project never pays back.
II.The IRR equals the required rate of return.
III.The NPV is negative and equal to the initial cash outlay.
IV.The operating cash flow is equal to the depreciation expense.
A)I and III only
B)II and IV only
C)I, II, and III only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

The cash break-even point is when the project's operating cash flow is zero, meaning it doesn't cover the initial investment, leading to no payback (I) and a negative NPV equal to the initial outlay (III).

Which of the Following Characteristics Relate to the Cash Break-Even