Byer, a plastics processor, is considering the purchase of a high- speed extruder as one option. The new extruder would cost $45,000 and would have a residual value of $3,000 at the end of its 10-year life. The annual operati ng expenses of the new extruder would be $7,000 The other option that Byer has is to rebuild its existing extruder The rebuilding would require an investment of $40,000 and would extend the life of the existing extruder by 10 years. The exsting extruder has annual operating costs of S9 000 per year and does not have a residual value Byers dscount rate is 14% Using net present value analysis, which opto s the better option and by how much? 1 Data Table ?(Click the icon to view the present value of $1 table ) EB (Click the icon to view the present value of annuity of $1 table Present Value of S 1 O A. O B. Better by $6 242 to purchase new extruder Better by $6,242 to rebuild existing extruder . Periods l 12% 0.507 14% 0 456 0.351 0270 0.208 16% 0.410 C. Beter by S5432 to rebuild existing extruder O D. Better by $5,432 to purchase new extruder 0404 0351 0 305 10 12 0.322 0.257 0 227 0 168 1 Data Table Present Value of Annuity of $1 Periods 14% 3.889 4.639 5.216 5.660 12% 4.968 5 650 6.194 16% 3.685 4.344 4.833 5 197 10 12 Click to select your answer Print Done