Which one of the following characteristics relates to the cash break-even point for a given project?
I. The project never pays back
Il. The IRR equals the required rate of return.
IlI. The NPV is equal to zero.
IV. The operating cash flow is equal to the depreciation expense.
a) The discounted payback period equals the project's life.
b) The IRR equals the required rate of return.
c) The NPV is equal to zero.
d) The OCF is equal to the depreciation expense.
e) The project never pays back

The break even point in cash is a point where the minimum revenue amount of the firm arise from sales that are needed to generate the business by having the positive cash flows

hence, the break even point in cash represents that the project will never pays back the invested amount

Therefore all the other options are wrong

Answer Link

divyamadaan8054 divyamadaan8054 · Answer 2 · 2021-12-21T17:47:42+01:00

Net present value (NPV) refers to the difference that exist between the present value of the cash inflows and that of the cash outflows for a particular period of time.

Correct option is E.

The characteristics that relates to the cash break-even point for a given project is" The project never pays back".

The point at which a company's total fixed and variable expenses equal its sales revenue is considered as the break-even point. This is also the point where profit is zero and cash flow is neutral.

The payback period of a corporation, on the other hand, is not concerned with a specific accounting period, but rather with the number of accounting periods required to repay an original investment.

To know more about IRR, refer to the link:

https://brainly.com/question/13119134