At the end of the year x company can accept a special order

Reference no: EM13579268

At the end of the year, X Company can accept a special order that will result in immediate profit of $28,000. However, if the order is accepted, regular prices will have to be reduced, and revenue will fall by $9,900 in each of the next four years and $8,100 in the fifth. Assuming a discount rate of 6%, what is the net present value of accepting the special order?

Reference no: EM13579268

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