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Which One of the Following Statements Is Correct When a Project

Question 14

Multiple Choice

Which one of the following statements is correct when a project is operating at its accounting profit break-even point?


A) The project is just recovering the cost of the initial investment.
B) The aftertax profit is equal to the initial investment.
C) The project just pays back on a discounted basis.
D) The project's IRR is equal to zero.
E) The contribution margin is equal to zero.

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