X Company has an opportunity to accept a special order that will result in immediate profit of
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Question:
X Company has an opportunity to accept a special order that will result in immediate profit of $76,000. After doing some market research that cost $4,000, the marketing manager believes that if X Company accepts the order, the company will lose regular customers. Specifically, she believes the effect will be lost profits of $9,500 in each of the next 5 years.
requirement
Assuming a discount rate of 6%, what is the net present value of accepting the special order?
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