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X Company is planning to stop the production and sale of Product Q, which lost $11,000 last year. If Product Q is dropped, tw

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Answer #1
Amount PV factor Present value
Avoidable loss 11000 3.546 39006
Increase in annual profits 10000 3.546 35460
Sell of Equipment 17000 1 17000
Net present value 91466
Net present value of stopping the production and sale of Product Q = 91466
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