The Speedy - Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $18,000. The new truck will have a useful life of 4 years and a residual value of $2,000. Operating costs for the new truck will be $400. 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 4 years and a residual value of $0. Operating costs for the overhauled truck will be $500. Using Speedy's discount rate of 4%, which option is better and by what amount? EEB (Click the icon to view the present value of $1 table.) EEB (Click the icon to view the present value of annuity of $1 table.) O A. Better to overhaul by $6,927 O B. Better to overhaul by $26,637 C. Better to purchase new by $26,637 O D. Better to purchase new by $6,927 Data Table Present Value of $1 5% 0.823 0.784 0.746 4% 0.855 0.822 0.790 Periods 0.792 0.747 0.705 2 PrintDone Data Table Present Value of Annuity of $1 4% 3.630 4.452 5.242 6% 3.465 4.212 4.917 Periods 4 5 5% 3.546 4.329 Print Done