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Question: X Company has an opportunity to accept a special order that will result in immediate profit of $64,000. 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 $8,500 in each of the next 5 years. Assuming a discount rate of 5%, what is the net present value of accepting the special order?

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Accounting Basics, Accounting

Category:- Accounting Basics
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