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 $8,000 per year for the next 7 years, but will require the purchase of some additional equipment, costing $17,000. This equipment should be worth $4,000 at the end of 7 years.

By eliminating Product B, the firm will lose the product's $5,000 annual contribution margin but will save $12,000 of annual fixed costs.

Assuming a discount rate of 5%, what is the net present value of expanding the production of Product A and eliminating Product B?

A: $34.546

B: $50.092

c: $72.634

D: $105.319

E: $152.713

F: $221.434