Question

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.

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Answer #1

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

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