Question: Need help answering this one, a brief explanation would be nice too. Thank you! X Company Is thinking about expanding the production of Product A
Need help answering this one, a brief explanation would be nice too. Thank you!

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 $8,000 per year for the next purchase of some additional equipment, costing $19,000. This equipment should be worth $3,900 at the end of 8 years. By eliminating Product B, the firm will lose the product's $6,000 annual contribution margin but will save $13,000 of annual fixed costs. Assuming a discount rate of 5%, what is the net present value of expanding the production of Product A and eliminating Product B? OA: $26,433 B: $38,328 C: $55,576 OD: $80,585 OE: $116,849 OF: $169,431 Send Feedback Submit Answer Tries 0/99 Communication Blocked MacBook Air F10 45) ) F12 11 FB 20 F3 888 4 FS - F6 esc A LA 00* O - delete @ P Y U Q W E R T enter tab return F J A D H K S ups lock shift C B N M X 1 Z command option V control option command 4730 95
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