X Company is considering conducting an immediate advertising campaign in order to increase sales of one of its more popular products. The marketing department did market research last year that suggested the company could sell 5,000 more units of this product; the cost of this research was $17,500. The cost of the advertising campaign would be $54,500. The product's contribution margin is $13.00 per unit; additional annual xed costs would be $20,000. The increased sales are expected to last for 8 years. Assuming a discount rate of 4%, what is the net present value of this investment? X Company is thinking about expanding the production of Product A and eliminating Product B. Expanding sales of A should result in additional rm prots of $10,000 per year for the next 8 years, but will require the purchase of some additional equipment, costing $16,000. This equipment should be worth $3,700 at the end of 8 years. By eliminating Product B, the rm will lose the product's $6,000 annual contribution margin but will save $13,000 of annual fixed costs. Assuming a discount rate of 5%, what is the net present value of expanding the production of Product A and eliminating Product B? X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment: Current equipment Current sales value $12,000 Final sales value 3,800 Operating costs 60,430 New equipment Purchase cost $162,000 Final sales value 3,800 Operating costs 29,920 The current and new equipment will last for 6 years. If X Company replaces the current equipment, what is the approximate internal rate of return? [Enter your rate as a decimal; so 1% would be .01] Z