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will require the purchase of some additional equipment, costing $12,000. This equipment should be worth $3,800 at the end of 5 years. By eliminating Product

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will require the purchase of some additional equipment, costing $12,000. This equipment should be worth $3,800 at the end of 5 years. By eliminating Product Y, the firm will lose the product's $5,000 annual contribution margin but will save $10,000 of annual fixed costs. Assuming a discount rate of 6%, what is the net present value of expanding the production of Product X and eliminating Product Y

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