The point where a project produces a rate of return equal to the required return is...

Question

Question

The point where a project produces a rate of return equal to the required return is known as the:

A) present value break-even point.

B) accounting break-even point.

C) point of zero profit.

D) internal break-even point.

E) income break-even point.

business finance

Answer 1

Answer #1

A) present value break-even point.

The point where a project produces a rate of return equal to the required return is known as the present value break-even point.

Answer 2

Similar Homework Help Questions

The point where a project produces a rate of return equal to the required return is...

The point where a project produces a rate of return equal to the required return is known as the: point of zero profit. internal break-even point. accounting break-even point. present value break-even point. income break-even point.
If an investment project has an internal rate of return equal to the required rate of...

If an investment project has an internal rate of return equal to the required rate of return, the NPV for the project: A. may be either positive or negative B. is positive C. cannot be determined D. is zero E. is negative
The net present value: a) increases as the required rate of return increases. b) is equal...

The net present value: a) increases as the required rate of return increases. b) is equal to the initial investment when the internal rate of return is equal to the required return. c) method of analysis cannot be applied to mutually exclusive projects. d) is inversely related to the discount rate. e) is unaffected by the timing of the related cash flows.

The internal rate of return is defined as the: A. discount rate that causes the profitability...

The internal rate of return is defined as the: A. discount rate that causes the profitability index for a project to equal zero. B. discount rate which equates the net present value of cash inflows to the net present value of cash outflows to zero. C. maximum rate of return a firm expects to earn on a project. D. rate of return a project will generate if the project in financed solely with internal funds.
If the net present value of a project is zero, the project is earning a return...

If the net present value of a project is zero, the project is earning a return equal to: Multple Choice Zero The rate of Inflation. The accounting rate of return. The required rate of return.
18. Which of the following is NOT true about the internal rate of return: A) A...

18. Which of the following is NOT true about the internal rate of return: A) A good project is one with IRR greater than the required return. B) IRR is the discount rate that results in a zero net present value for the project. C) Crossover rate for two projects is the IRR of the project with the difference of the cash flows of the two projects.. D) For two projects of the same size, IRR will usually choose the...

The internal rate of return is defined as the: O Discount rate that causes the profitability...

The internal rate of return is defined as the: O Discount rate that causes the profitability index for a project to equal zero. O Rate of return a project will generate if the project in financed solely with internal funds. O Discount rate that equates the net cash inflows of a project to zero. O Maximum rate of return a firm expects to earn on a project. O Discount rate which causes the net present value of a project to...
8) Project A has an internal rate of return (IRR) of 15 percent. Project B has...

8) Project A has an internal rate of return (IRR) of 15 percent. Project B has an IRR of 14 percent. Both projects have a required retum of 12 percent. Which of the following statements is MOST correct? A) Project A must have a higher NPV than Project B. B) Both projects have a positive net present value (NPV) C) Project B has a higher profitability index than Project A. D) If the required return were less than 12 percent,...
Which of the following comes closest to the internal rate of return (IRR) of a project...

Which of the following comes closest to the internal rate of return (IRR) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 11? The required rate of return for the project is 13%. a. 5.36% b. 4.81 % C. 3.99% d. 4.37% e. 6.05% Oc.

An independent project should be accepted if it produces a net present value that is less...

An independent project should be accepted if it produces a net present value that is less than zero. has an IRR greater than the required rate of return. has an IRR greater than zero. produces a profitability index greater than or equal to zero.