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X Company is thinking about expanding the production of Product A and eliminating Product B....

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Accounting

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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 8 years, but will require the purchase of some additional equipment, costing $17,000. This equipment should be worth $3,200 at the end of 8 years. By eliminating Product B, the firm will lose the product's $7,000 annual contribution margin but will save $13,000 of annual fived costs. Assuming a discount rate of 4%, what is the net present value of expanding the production of Product A and eliminating Product B? A: $16,621 B:$24,100 O C: $34,945 D: $50,670 E: $73,471 O F: $106,53,3

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