1. While financial and cash flow breakeven measures must account for taxes, accounting breakeven does not. Why?
a. A firm with no profit or loss doesn't owe taxes or receive tax credits.
b. Breakeven analysis isn't concerned with taxes.
c. Financial and cash flow breakeven measures are wrong.
d. Accounting breakeven is wrong
2. The process of finding the present value of a cash flow or a series of cash flows is called:
a. compounding
b. time lines
c. discounting
d. the opportunity cost rate