The point where a project produces a rate of return equal to the required return is known as the:
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point of zero profit. |
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internal break-even point. |
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accounting break-even point. |
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present value break-even point. |
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income break-even point. |
Whenever any project is selected over other alternatives then its main motto is to generate profit and recover the amount that is invested for the project.
the return that a company is expected by investing any project is called rate of return
So the point where it matches exactly with the required return is called present value break even point.
answer is option d
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: 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.
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
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.
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.
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...
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.
Which one of the following will occur when the internal rate of return equals the required return? The average accounting return will equal 1.0. The profitability index will equal 1.0. The profitability index will equal 0. The net present value will equal the initial cash outflow. The profitability index will equal the average accounting return.
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.
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
Tangarine Company is considering a project with an internal rate of return of 12%. Tangarine requires a minimum rate of return of 10%. The net present value of the project is: a.negative. b.equal to zero. c.infinite. d.positive. e.None of these choices are correct.