Question: Break-Even Intuition consider a project with a required return of R% that costs $1 and will last for N years. The project uses straight-line depreciation

Break-Even Intuition consider a project with a required return of R% that costs $1 and will last for N years. The project uses straight-line depreciation to zero over the N-year life; there is no salvage value or net working capital requirements.

a. At the accounting break-even level of output, what is the ERR of this project, the payback period the NPV?

b. At the cash break-even level of output, what is the ERR of this project the payback period the NPV?

c. At the financial break-even level of output, what is the ERR of this project the payback period the NPV?

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