Question
X Company has an opportunity to accept a special order that will result in immediate profit...
X Company has an opportunity to accept a special order that will
result in immediate profit of $76,000. After doing some market
research that cost $4,500, 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
$8,500 in each of the next 5 years.
Assuming a discount rate of 7%, what is the net present value of
accepting the special order? [Note: Use the Present Value tables in
the Coursepack.]
Homework Answers
Answer #1
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
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