________________________________ identifies the minimum inputs into a project that are necessary to produce positive NPV.

Question

Quizplus · Accepted Answer

Break-even analysis identifies the minimum inputs required to cover the fixed and variable costs and generate enough revenue to reach the break-even point. Any input exceeding the break-even point would result in a positive NPV. Therefore, it helps determine the minimum inputs necessary to produce a positive NPV. Sensitivity analysis, NPV analysis, and profit analysis are helpful in determining the impact of various inputs on a project's performance, but they do not necessarily identify the minimum inputs required for a positive NPV.

________________________________ Identifies the Minimum Inputs into a Project That Are