13. Break-even analysis (S10.2) Define the cash-flow break-even point as the sales volume (in dollars) at which
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13. Break-even analysis (S10.2) Define the cash-flow break-even point as the sales volume (in dollars) at which cash flow equals zero.
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 all future years, is its NPV positive or negative?
Chapter 10 Project Analysis 295
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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