97.

X Company is thinking about expanding the production of Product X and eliminating Product Y. Expanding sales of X should result in additional firm profits of $12,000 per year for the next 8 years, but will require the purchase of some additional equipment, costing $19,000. This equipment should be worth $3,200 at the end of 8 years.

By eliminating Product Y, the firm will lose the product's $6,000 annual contribution margin but will save $12,000 of annual fixed costs.

Assuming a discount rate of 7%, what is the net present value of expanding the production of Product X and eliminating Product Y?

A: $90,340

B: $130,994

C: $189,941

D: $275,414

E: $399,350

F: $579,058

IDK if you need this but here it is just in case:

TTable 1: Present Value of $1.00 Table 2: Present Value of an Annuity of $1.00