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Ernestine is reviewing a project with projected sales of 1,500 units a year, a cash flow of $38 a unit, and a project life of

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Ernestine is reviewing a project with projected sales of 1,500 units a year, a cash flow of $38 a unit, and a project life of four years. The initial cost of the project is $87,000. The relevant discount rate is 12 percent. She has the option to abandon the project after one year at which time she feels she could sell the project for $50,000. At what level of sales should she be willing to abandon the project? Multiple Choice O 483 units O 713 units O 607 units O 548 units O 967 units

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