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What level of sales should the firm be willing to abandon

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You lead a project team that is considering a 5-year project with an initial cost of $150,000 and a discount rate of 12 percent. Your team forecasts sales of 1,800 units per year with cash flow at $22 per unit. An option will exist to abandon this project after three years, with the forecast value at $40,000. At what level of sales should the firm be willing to abandon this project at the end of the third year?

Reference no: EM133061390

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