12. Firm AAA has determined that an operating cash flow (OCF) of $1,600 will result in a zero net present value for the project, which is the minimum requirement for project acceptance. The fixed costs are $5,000 and the contribution margin per unit is $10. The Firm feels that it can realistically capture 0.5 percent of the 10,000 unit market for this product. Should the company develop the new product? Why or why not? (Hint: Compute financial break-even point and then compare it with expected sale)

A.	Yes; The project's required rate of return exceeds the expected IRR.
B.	Yes; The expected level of sales exceeds the required level of production.
C.	No; The required level of production exceeds the expected level of sales.
D.	No; The IRR is less than the required rate of return.