Break-even time: It refers to the estimated time period until the present value of net cash flows is equalized to the initial investment. It is different from the payback period method as it considers the time value of money concept. Break-even time.

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Chapter 26, Problem 23E

To determine

Concept Introduction:

Break-even time: It refers to the estimated time period until the present value of net cash flows is equalized to the initial investment. It is different from the payback period method as it considers the time value of money concept.

Break-even time.

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