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of some additional equipment, costing $15,000. This equipment should be worth $4,000 at the end...

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Accounting

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of some additional equipment, costing $15,000. This equipment should be worth $4,000 at the end of 7 years. By eliminating Product Y, 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 X and eliminating Product Y

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