You are examining a new project and you expect to sell 7600 units per year at $68 net cash flow per unit for the next 10 years. The relevant discount rate is 14% and the initial investment required is $2.3 million. After the first year, the project can be dismantled and sold for $1.4 million. If expected sales are revised based on the first years performance, at what level of expected sales (Q) would it make sense to abandon the investment?

a) Abandon project if Q > 4162.

b) Abandon project if Q < 4400.

c) Abandon project if Q < 4162. CORRECT ANSWER IS C

d) Abandon project if Q > 4400.