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Rizzo's is considering a project with a life of five years and an initial cost of $131,000. The discount rate for the project is 14
Rizzo's is considering a project with a life of five years and an initial cost of $131,000. The discount rate for the project is 14 percent. The firm expects to sell 2,100 units a year. The cash flow per unit is $23. The firm will have the option to abandon this project after three years at which time it expects it could sell the project for $49,000. At what level of sales should the firm be willing to abandon this project? Multiple Choice 1,294 units 1,087 units 1,479 units 1,502 units 1,619 units
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