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 $79,000. 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 $9,500 in each of the next 4 years.

Assuming a discount rate of 5%, what is the net present value of accepting the special order?

Reference no: EM132171057

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