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

question 40

Multiple Choice

Margerit is reviewing a project with projected sales of 1,500 units a year, a cash flow of €40 a unit and a three-year project life.The initial cost of the project is €95,000.The relevant discount rate is
15%) Margerit has the option to abandon the project after one year at which time she feels she
Could sell the project for €60,000.At what level of sales should she be willing to abandon the
Project?

• A)899 units
• B)923 units
• C)967 units
• D)1,199 units
• E)1,206 units

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Definitions:

Lymph-collecting Vessel

Part of the lymphatic system, these vessels carry lymph, a clear fluid containing white blood cells and waste products, back towards the heart.

Lymph Trunk

Large lymphatic vessels that drain lymph from different parts of the body and empty into the venous system.

Lymph Duct

A large vessel in the lymphatic system that drains lymph from various parts of the body back into the blood circulation.

Red Pulp

Tissue in the spleen composed of sinuses filled with blood, responsible for filtering out old or damaged blood cells.