A Software Firm Is Considering Developing a New Financial Planning

A software firm is considering developing a new financial planning software package.This new project is expected to sell 5,000 units per year and generate net operating cash flow of $100 per unit for the next five years.The relevant discount rate is 15 percent and the initial investment is $1.25 million.At what annual level of sales would it make sense to abandon the project if the project can be sold for $150,000 after the first year? Ignore taxes.

A) Less than 447 units
B) Less than 525 units
C) More than 3,340 units
D) Less than 3,729 units