Monday, November 11, 2019

Given the following, which feature identifies the most desirable level of output for a project?

Given the following, which feature identifies the most desirable level of output for a project? 
 
A. 
operating cash flow equal to the depreciation expense

B. 
payback period equal to the project's life

C. 
discounted payback period equal to the project's life

D. 
zero IRR

E. 
zero operating cash flow
Refer to sections 11.3 and 11.4


42.
At the accounting break-even point, the: 
 
A. 
payback period must equal the required payback period.

B. 
NPV is zero.

C. 
IRR is zero.

D. 
contribution margin per unit equals the fixed costs per unit.

E. 
contribution margin per unit is zero.
Refer to section 11.3


43.
A project has a payback period that exactly equals the project's life. The project is operating at: 
 
A. 
its maximum capacity.

B. 
the financial break-even point.

C. 
the cash break-even point.

D. 
the accounting break-even point.

E. 
a zero level of output.
Refer to section 11.3

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