Corporate Finance Assignment/ Professional Essay Writers
May 27th, 2020
Your firm is considering a project with a five-year life and an initial cost of $120,000. The discount rate for the project is 12%. The firm expects to sell 2,100 units a year. The cash flow per unit is $20. The firm will have the option to abandon this project after three years at which time it expects it could sell the project for $50,000. At what level of sales should the firm be willing to abandon this project?
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Corporate Finance Assignment/ Professional Essay Writers
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A. 420 units.
B. 1,041 unit.s
C. 1,479 units.
D. 1,618 units.
E. 2,500 units.
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