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 $11,000 per year for the next 5 years, but will require the purchase of some additional equipment, costing $16,000. This equipment should be worth $3,300 at the end of 5 years. By eliminating Product B, the firm will lose the product's $4,000 annual contribution margin but will save $13,000 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: $30,054 OB: $39,971 OC: $53,162 OD: $70,705 O E: $94,038 OF: $125,070 Submit Answer Tries 0/99