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Firms Often Calculate a Project's Break-Even Sales Using Accounting Profit

Question 55

Multiple Choice

Firms often calculate a project's break-even sales using accounting profit. However, break-even sales based on NPV is generally


A) higher than the one calculated using accounting profit.
B) lower than the one calculated using accounting profit.
C) equal to the one calculated using accounting profit.
D) not related to the one calculated using accounting profit.

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