Question: Marguerite is reviewing a project with projected sales of 1,400 units a year, a cash flow of $39 a unit and a 3-year project life. The initial cost of the project is $94,000. The relevant discount rate is 14 percent. Marguerite has the option to abandon the project after one year at which time she feels she could sell the project for $63,000. At what quantity of sales per year should she be willing to abandon the project after the first year?