Isabelle Is Reviewing a Project with Projected Sales of 1,500

Multiple Choice

Isabelle is reviewing a project with projected sales of 1,500 units a year,a cash flow of $38 a unit,and a project life of 4 years.The initial cost of the project is $87,000.The relevant discount rate is 12 percent.She has the option to abandon the project after 1 year at which time she feels she could sell the project for $50,000.At what level of sales should she be willing to abandon the project?

A) 713 units
B) 483 units
C) 967 units
D) 548 units
E) 607 units