10) The GM of a hotel is considering the purchase of a new HVAC system as one option. The new system would cost $500,000 and would have a residual value of $50,000 at the end of its 8 year life. The annual operating expenses of the new system would be $8,000. The other option that the GM has is to rebuild its existing HVAC system. The rebuilding would require an investment of $200,000 and would extend the life of the existing system by 8 years. The existing system has annual operating costs of $11,000 per year and does not have a residual value. The discount rate is 14%. Show how to find the NPV for each option. Buy a new HVAC: NPV: Rebuild the existing HVAC: NPV