If a project fails to break even from a pretax operating cash flow perspective, then the company is going to have to put more cash into the project to keep it going.

Question

Quizplus · Accepted Answer

If a project is not generating enough cash to cover its operating expenses and debt service, then the company will need to inject more cash to keep the project afloat. This means that the project is not self-sustaining and is not generating enough revenue to cover its costs.

If a Project Fails to Break Even from a Pretax