Gas heaters cost $10,000 to purchase, result in yearly gas bills of $1,000, and last 6 years. Electric heaters cost $6,000 to purchase, result in yearly electric bills of $2,300, and last for 10 years. The discount rate is 12 percent per year. Having calculated the equivalent annual costs for the gas and electric heaters, suppose your existing heater has one more year of life left in it, and will cost $2,500 to run over the next year (including fuel costs). Do you replace your existing heater now, or do you wait?

A) It is more cost-effective to replace the existing heater now

B) It is more cost-effective to wait