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X Company is planning to drop a department that has shown a loss over the past few years. Its accountant estimates that the savings from
X Company is planning to drop a department that has shown a loss over the past few years. Its accountant estimates that the savings from dropping the department will be $15,600 a year for the next 7 years. The accountant also believes that the company will be able to immediately sell some equipment that was used in the department for $19,000. Assuming a discount rate of 5%, what is the net present value of dropping the department?
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