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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

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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 $11,000 per year for the next 7 years, but will require the purchase of some additional equipment, costing $17,000. This equipment should be worth $3,400 at the end of 7 years. By eliminating Product B, the rm will lose the product's $5,000 annual contribution margin but will save $14,000 of annual fixed costs. Assuming a discount rate of 4%, what is the net present value of expanding the production of Product A and eliminating Product B? CA: $105,624 OB: $153,155 0c: $222,074 on: $322,008 OE: $466,912 OF: $677,022

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