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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 set year for the next 7 years, but will require the purchase of some additional equipment, costing $11,000. This tquipment should be worth 94,000 at the end of 7 years By elminating Product B, the firm wit lose the produce's $8,000 annual contribution margin buf nill save $12,000 of annual fixed costs Assuming a discount rate of 7.9, what is the net present value of expanding the pecduction of Product A and eliminating Product B? B: 176,964

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