Sly, a plastics processor, is considering the purchase of a high-speed extruder as one option. The new extruder would cost $52,000 and would have a residual value of $4,000 at the end of its 8-year life. The annual operating expenses of the new extruder would be $7,000. The other option that Sly 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 8 years. The existing extruder has annual operating costs of $15,000 per year and does not have a residual value. Sly's discount rate is 16%. Using net present value analysis, which option is the better option and by how much? Present Value of $1 Periods 12% 14% 16% 6 0.507 0.456 0.410 8 0.404 0.351 0.305 10 0.322 0.270 0.227 12 0.257 0.208 0.168 Present Value of Annuity of $1 Periods 12% 14% 16% 6 4.111 3.889 3.685 8 4.968 4.639 4.344 10 5.650 5.216 4.833 12 6.194 5.660 5.197 A. Better by $22,752 to rebuild existing extruder B. Better by $23,972 to rebuild existing extruder C. Better by $23,972 to purchase new extruder D. Better by $22,752 to purchase new extruder