Marguerite Is Reviewing a Project with Projected Sales of 1,400

Multiple Choice

Marguerite is reviewing a project with projected sales of 1,400 units a year,a cash flow of $39 a unit and project life of 3 years.The initial cost of the project is $94,000 and the discount rate is 14 percent.She 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 annual sales should she be willing to abandon the project after the first year?

A) 899 units
B) 981 units
C) 967 units
D) 1,199 units
E) 1,006 units