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What is the net present value of accepting the special order

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Question - X Company has an opportunity to accept a special order that will result in immediate profit of $56,000. 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 $9,000 in each of the next 5 years.

Assuming a discount rate of 7%, what is the net present value of accepting the special order?

A: $13,237

B: $14,958

C: $16,903

D: $19,100

E: $21,583

F: $24,389

Reference no: EM132508868

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