View solution to the question:
Margerit is reviewing a project with projected sales of 1,500 units a year, a cash flow of $40 a unit and a three year project life. The initial cost of the project is $95,000. THe relevant discount rate is 15%. Margerit has the option to abandon the project after one year at which time she feels she could sell the project for $60,000. At what level of sales should she be willing to abandon the project?
PLEASE SHOW ALL WORK!!! THANKS