You are examining a new project. You expect to sell 6,000 units per year at $100 profit per item for the next 10 years. In other words, the annual cash flow is projected to be $100 x 6,000 $600,000. Your discount rate is 15% and the initial investment cost is 2,000,000. After the first year, the project can be abandoned and sold for $1.5m. If expected sales quantity is revised based on the first years performance (as in units sold), when would it make sense to abandon the investment? in other words, at what level of expected number of units sold would it make sense to abandon the project?

Select one: O 1.2154 O 2.4765 O 3.3144 O 4.3412 O 5.4213 O 6.2877