We are examining a new project. We expect to sell 6,200 units per year at $76 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $76 6,200 = $471,200. The relevant discount rate is 18 percent, and the initial investment required is $1,730,000.

What is the base-case NPV?

After the first year, the project can be dismantled and sold for $1,600,000. If expected sales are revised based on the first years performance, below what level of expected sales would it make sense to abandon the project?