Question: Your firm is considering a project with a five - year life and an initial cost of $ 2 6 0 , 0 0 0

Your firm is considering a project with a five-year life and an initial cost of $260,000. The discount rate for the project is 14 percent. The firm expects to sell 3,600 units a year. The cash flow per unit is $30. The firm will have the option to abandon this project after three years at which time they expect they could sell the project for $150,000. You are interested in knowing how the project will perform if the sales forecast for years four and five of the project are revised such that there is a 6040 chance that the sales will be either 2,800 or 4,400 units a year, respectively. What is the net present value of this project given your sales forecasts? Use MS Excel
 Your firm is considering a project with a five-year life and

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