What is Decision break point analysis ?

Analysis of key variables involved in an investment project to determine the values at which each of the variables results in the net present value becoming negative.

A type of sensitivity analysis that indicates the value at which the  key variables for a projects, or different  alternatives of that project will result in a negative NPV, Net Present Value.

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Production will continue when sale price reach the break even point. If sales price beyond the break even point, Company will be profitable. Decision will make depend on break even point.

A type of sensitivity analysis that indicates the value at which a key variable will result in a negative net present value for an investment project.