Byer, a plastics processor, is considering the purchase of a high-speed extruder as one option. The new extruder would cost $54,000 and would have a residual value of $4,000 at the end of its 6-year life. The annual operating expenses of the new extruder would be $5,000. 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 6 years. The existing extruder has annual operating costs of $10,000 per year and does not have a residual value. Byer's discount rate is 12%. Using net present value analysis, which option is the better option and by how much? E (Click the icon to view the present value of $1 table.) Click the icon to view the present value of annuity of $1 table.) O A. Better by $6,555 to rebuild existing extruder B. Better by $6,555 to purchase new extruder OC. Better by $8,583 to purchase new extrudelt OD. Better by $8,583 to rebuild existing extruder years. The existing extruder has annual operating costs of $10,000 per year and does not have a residual value. Byer's discount rate is 12%. Usir present value analysis, which option is the better option and by how much? (Click the icon to view the Click the icon to view the 0 Data Table X A. Better by $6,555 to re B. Better by $6,555 to pl c. Better by $8,583 to pl OD. Better by $8,583 to re Present Value of $1 Periods 6 8 10 12 12% 0.507 0.404 0.322 0.257 14% 0.456 0.351 0.270 0.208 16% 0.410 0.305 0.227 0.168 Print Done er, a plastics processor, is considering the purchase of a high-speed extruder as residual value of $4,000 at the end of its 6-year life. The annual operating expenses of the new extruder would be $5,000. The other option th as 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 ears. The existing extruder has annual operating costs of $10,000 per year and does not have a residual value. Byer's discount rate is 12%. Usi resent value analysis, which option is the better option and by how much? (Click the icon to view the (Click the icon to view th 0 Data Table A. Better by $6,555 to re O B. Better by $6,555 top O c. Better by $8,583 to pl OD. Better by $8,583 tord Present Value of Annuity of $1 Periods 12% 6 4.111 8 4.968 10 5.650 12 6.194 14% 3.889 4.639 5.216 5.660 16% 3.685 4.344 4.833 5.197 Print Done Allta calort vnur