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Problem 1: Assume a firm is purchasing new equipment for a project. The selling price of the product along with the variable cost, fixed costs and annual depreciation expense have been determined. The firm is about to calculate its accounting, cash and financial break even points. Which break even points will the project reach first, then second and finally last?
a. cash break even point first followed by the accounting break even point and then finally the financial break even point.
b. cash break even point first followed by the financial break even point and then finally the accounting break even point
c. accounting break even point first followed by the cash break even point and then finally the financial break even point
d. accounting break even point first followed by the financial break even point and then finally the cash break even point
e. financial break even point followed by the cash break even point and then finally the accounting break even point
f. financial break even point first followed by the accounting break even point and then finally the cash break even point
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