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r Byer, a pastics procsSO C value of $8.000 at the end of its 6t year lde. Th edisting extruder The rebidding would regare an

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r Byer, a pastics procsSO C value of $8.000 at the end of its 6t year lde. Th edisting extruder The rebidding would regare an inwestment of $50,000 and would extend the r a operati ists of value Byers discount rates 16% Usr g net present value nalysis which option s the bettor option and by how much? e annual operating expenses of the new exdrader would be $6.000. The other option that Byer has is to rebuild its life of the existing extrader by 6 years. The eosting extruder has 1$11,000 per year and does not have a residual EEBIk the ientoe the pessent io t EEE Ck the icoe to wow the present value of annuity of $1 table) Better by $22 425 to rebuild existing extruder Better by $26.705 to purchase new extrusder C. Better by $25,705 to rebuld existing extruder Better by $22 425 to purchase new extruder Data Table Present Value of $1 Penods 14% 0 456 0.351 0.270 0.208 76% 0.410 0 305 0.22T 0 168 0.507 0 404 0.322 0 257 10 12 Data Tabie Prnt i Done Fresent Value of Annuity of $1 Penods 16% 3.685 4.344 4 833 5.197 3.889 4.568 5.650 6.194 216 5.660 12

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