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标题: Q - NPV [打印本页]

作者: ShooterMcCFA 时间: 2011-7-11 18:40 标题: Q - NPV

Please explain the breakpoint of a project. Schweser note says:

"Any given project’s NPV will decline when a breakpoint is reached." &

"An increase in the after-tax cost of debt may occur at a break point."

Please explain.

作者: ftwcfa 时间: 2011-7-11 18:40

to add insult to injury:

breakpoint is calculated as (amount of capital where component cost changes / weight of component in the WACC)

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