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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 firm profits

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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 firm profits of $12,000 per year for the next 6 years, but will require the purchase of some additional equipment, costing $13,000. This equipment should be worth $3,000 at the end of 6 years. By eliminating Product B, 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 A and eliminating Product B? A: $62,140 B: $72,704 C: $85,064 D: $99,525 E: $116,444 F: $136,239 Tries 0/99 Submit

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