Annual Net Cash Inflows equals the Payback Period. However, this is different from breakeven time.

B. Annual fixed costs ÷ monthly contribution margin is a meaningless calculation. Annual fixed costs ÷ the unit contribution margin results in the breakeven point in number of units to be sold per year to break even. And annual fixed costs ÷ the contribution margin ratio results in the breakeven point in terms of dollars of revenue. However, breakeven time is a completely different concept from breakeven point.

C. The point where cumulative cash inflows on a project are equal to total cash outflows is the payback period, not the breakeven time.

D. The breakeven point is also called the discounted payback period. The payback method (undiscounted) determines the number of periods that must pass before the net after-tax cash inflows from the investment will equal (or "pay back") the initial investment cost. However, the payback method has a weakness: it does not consider the time value of money. The breakeven time, or discounted payback method, is an attempt to deal with that weakness. The discounted payback method uses the present value of cash flows instead of cash flows in calculating the payback period. Each year's cash flow is discounted using the required rate of return, and those discounted cash flows are used to calculate the payback period.