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Company is thinking obout expanding the production of Froduct x and eliminating troduct Y. Expanding swess of x shovild rewa in addeional nem prents of
Company is thinking obout expanding the production of Froduct x and eliminating troduct Y. Expanding swess of x shovild rewa in addeional nem prents of s11,000 per year for the next 6 years, but nil zuive the purchase of some acsticnal equipment, ossting $17,000. This ecupment chould be worth $3,600 at the end of 6 years, Weliminating Probuct y, the fros wil lose the product's 56,000 anrual contribution margin but wall seve 310,000 of annual fised costs. Ssturting a tivesunt rate of 5%, what is the net present vwive of exanding the production of Prosuct x and eliminating froduct in? Tries 0199
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