The Speedy - Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $19,000. The new truck will have a useful life of 5 years and a residual value of $1,000. Operating costs for the new truck will be $500. The second option is to overhaul its existing truck. The cost of the overhaul will be $9,000. The overhauled truck will have a useful life of 5 years and a residual value of $0. Operating costs for the overhauled truck will be $600. Using Speedy's discount rate of 6%, which option is better and by what amount? (Click the icon to view the present value of $1 table.) |(Click the icon to view the present value of annuity of $1 table.) ..... A. Better to overhaul by $27,579 B. Better to purchase new by $8,832 C. Better to purchase new by $27,579 D. Better to overhaul by $8,832 - Data Table Present Value of $1 Periods 4 6% 4% 0.855 0.822 5% 0.823 0.792 0.747 5 0.784 6 0.790 0.746 0.705 - Data Table 5% 6% Present Value of Annuity of $1 Periods 4% 4 3.630 5 4.452 3.546 4.329 3.465 4.212 4.917 6 5.242 5.076