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

question 59

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

---

Definitions:

Maslow's

A hierarchy of human needs proposed by Abraham Maslow, suggesting that basic physical necessities must be satisfied before higher-level psychological and self-fulfillment needs can be pursued.

Fromm

Erich Fromm was a psychoanalyst and social psychologist who explored the interaction between psychology and society, emphasizing the importance of love, freedom, and human nature in his work.

Character Orientation

A concept relating to how individuals relate to the world and themselves, including aspects of their personality and behavior patterns.

Fromm

Fromm refers to Erich Fromm, a psychoanalyst and social psychologist known for his works on authoritarianism, democracy, and the intersection of psychology and society.