At what level of sales should she be willing to abandon the, Financial Management

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At what level of sales should she be willing to abandon the

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 percent. Margerit has the option to abandon the project after one year at which time she feels she could sell the project for $70,000. At what level of sales should she be willing to abandon the project?

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Financial Management: At what level of sales should she be willing to abandon the

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