X Company is planning to stop the production and sale of Product Q, which lost $8,000 last year. If Product Q is dropped, two things will happen in each of the next four years: 1) last year's loss will be avoided, and 2) sales of Product R will be increased, contributing $12,000 to annual profits. In addition, if Product Q is dropped, the company will be able to sell some equipment immediately for $14,000. Assuming a discount rate of 4%, what is the net present value of stopping the production and sale of Product Q?

Answer rating: 100% (QA)

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