Principles of Corporate Finance

(Barry) #1

Break Even Analysis


w Point at which the NPV=0 is the break even point.
w Otoban Motors has a breakeven point of 8,000 units
sold.


Sales, 000’s

PV (Yen)
Billions

400

200

19.6
85 200

Break even
NPV=9

PV Inflows

PV Outflows
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