초록
A break-even analysis is a method used widely for profit planning or decisions in most companies. It is useful tool in financial studies because it is simple and offers useful insights from a modest amount of data. Although it is widely used, it has some weaknesses. It is limited in particular to the analysis for a short term time horizon or one period. We suggest a new break-even procedure to analyze projects with a long term time horizon as keeping the simplicity of a conventional break-even analysis. We will make efforts doing to include actual data for a cost or an income as much as possible rather than developing a mathematical model to improve unreality of a traditional break-even analysis. Also, we will use the spreadsheet software to solve problems.
