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PLEASE HELP Ernestine is reviewing a project with projected sales of 1,500 units a year, a cash flow of $38 a unit, and a project
PLEASE HELP
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 967 units () 713 units O 483 units 607 units 548 units
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