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Byer, a plastics processor, is considering the purchase of a high - speed extruder as one option. The new extruder would cost $51,000 and would have a residual value of $8,000 at the end of its 10 - year life. The annual operating expenses of the new extruder would be $7,000. The other option that Byer has is to rebuild its existing extruder. The rebuilding would require an investment of $30,000 and would extend the life of the existing extruder by 10 years. The existing extruder has annual operating costs of $12,000 per year and does not have a residual value. Byer's discount rate is 16%. Using net present value analysis, which option is the better option and by how much? E (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) O A. Better by $3,165 to rebuild existing extruder O B. Better by $4,981 to purchase new extruder OC. Better by $4,981 to rebuild existing extruder O D. Better by $3,165 to purchase new extruder Data Table Present Value of $1 Periods 12% 14% 16% 0.507 0.456 0.410 0.404 8 0.351 0.305 0.270 10 0.227 0.322 12 0.257 0.208 0.168 Print Done Data Table Present Value of Annuity of $1 Periods 12% 14% 16% 4.111 3.889 3.685 8 4.968 4.639 4.344 5.650 10 5.216 4.833 12 6.194 5.660 5.197 Print Done

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