3. ROC Company has two alternatives remodel an old car paint shop or remove the old car shop and install a new one. The company uses a discount rate of 10 %. New paint car shop Old Paint car shop Annual Revenues 90,000 70,000 Annual operating costs. - 30,000 ) ) Annual net cash inflow 60,000 45,000 Cost 300,00 Useful life 10 years Replace brush at the end of 6 years ..... 50,000 Salvage of old equipment 40,000 IF ROC remodels the existing Paint car shop Remodel cost 175,000 Replace brushes at the end of 6 years. A) How much is the NPV for Investing the new Paint shop & remodeling the existing Paint ca shop will be ? Analyze which alternative will have a higher NPV? ( Show details of your answer) ( 7 Points