Haver Steel started a new project last year. As it turns out, the project has be

Question

Haver Steel started a new project last year. As it turns out, the project has been operating at its accounting break-even level of output and is now expected to continue at that level over its lifetime. Given this, you know that the project:
Answer - please explain answer chosen.

is operating at a higher level than if it were operating at its cash break-even level.

is operating at a higher level than if it were operating at its financial break-even level.has a zero net present value.

has a zero net present value.

is lowering the total net income of the firm.

will never pay back.

Explanation / Answer

is operating at a higher level than if it were operating at its financial break-even level.has a zero net present value. Since accounting break even level is low

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