Answer (D) is correct . Breakeven time is a capital budgeting tool that is widely used to evaluate the rapidity of new product development. It is the period required for the discounted cumulative cash inflows for a project to equal the discounted cumulative cash outflows. The concept is similar to the payback period, but it is more sophisticated because it incorporates the time value of money. It also differs from the payback method because the period covered begins at the outset of a project, not when the initial cash outflow occurs.
Answer (A) is incorrect because It is related to breakeven point, not breakeven time.
Answer (B) is incorrect because The payback period equals investment divided by annual undiscounted net cash inflows.
Answer (C) is incorrect because The payback period is the period required for total undiscounted cash inflows to equal total undiscounted cash outflows.
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