YTZ Co. currently manufactures and sells 47471 units annually of its single product. The company's product has the following cost structure:

Variable cost per unit

$24.71

Annual avoidable fixedmanufacturing costs

$149871

A new supplier has offered to enter into a 5-year contract to provide YTZ with the 47471 units it needs at a cost of $28.54 per unit.If YTZ decides to enter into the contract, the facilities currently used to manufacture the product could be sold.

The company uses the NPV method to evaluate proposals. Assuming a rate of return of 7%, what is the minimum amount the company would have to sell the facilities for if they were to accept this proposal?

Select one:

a.$22775

b.$181814

c.$149871

d.$130972