5 Question 4 (1 point) Listen Suppose that GMC is trying to select an assembly line for producing their new SUV. They have two options Option A is a highly automated assembly line that has a large up-front cost but low maintenance cost over the years. This option will cost $10 million today with a yearly operating cost of $2 million. The assembly line will last for 15 years and be sold for $4 million in 15 years. Option is a cheaper alternative with less technology, a longer life, but higher operating costs. This option will cost $5 million today with a yearly operating cost of $3 million. This assembly line will last for 25 years and be sold for $1 million in 25 years. If the firm has a discount rate of 12% and does not pay taxes, which of the following statement is correct? (Hint: For each of the two options, the selling price of the machinery will be used to arrive at the cashflow in the terminal year) a. Option A has an NPV of -23,63 million and option B has an NPV of 28.53 million. Therefore, GMC should choose option A b. Option A has an NPV of -28.47 million and option has an NPV of -22.89 million. Therefore, GMC should choose option B. c. Option A has an EAC of 3.36 million and option has an EAC of 3.63 million. Therefore, GMC should choose option A d. Option A has an EAC of 3.36 million and option B has an EAC of 3.63 million. Therefore, GMC should choose option B Bannel