X Company is thinking about expanding the production of Product X and eliminating Product Y. Expanding sales of X should result in additional firm profits of $8,000 per year for the next 7 years, but will require the purchase of some additional equipment, costing $10,000. This equipment should be worth $3,900 at the end of 7 years.

By eliminating Product Y, the firm will lose the product's $6,000 annual contribution margin but will save $12,000 of annual fixed costs.

Assuming a discount rate of 7%, what is the net present value of expanding the production of Product X and eliminating Product Y?

A: $28,851

B: $38,372

C: $51,034

D: $67,876

E: $90,275

F: $120,065