Define the cash-flow break-even point as the sales volume (in dollars) at which cash flow equals zero.
Question:
a. Is the cash-flow break-even level of sales higher or lower than the zero-profit (accounting) break-even point?
b. If a project operates at cash-flow break-even [see part (a)] for its entire life, is its NPV positive or negative?
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a Cash flow net income depreciation If depreciation is positive then cash flow will ...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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