drop-down above menu shows: keeping old system OR purchasing new system

NPV Total and Differential Analysis of Replacement Decision Assume Pinstripes Cleaning and Restoration, near Dallas, Texas, must either have a complete overhaul of its current dry-cleaning system or purchase a new one. Its cost of capital is 16%. The following cost projections have been developed: If Pinstripes keeps the old system, it will have to be overhauled immediately. With the overhaul, the old system will have a useful life of five more years. Required a. Use the total cost approach to evaluate the alternatives of keeping the old system and purchasing the new system. Indicate which alternative is preferred. Hint: Use a negative sign to indicate a negative net present value. Net present value of operating old system: $ Net present value of purchasing and operating new system: $ Net savings of b. Use the differential cost approach to evaluate the desirability of purchasing the new system. Note: There may be slight differences between your answers in part a and part b due to rounding. Note: Round each of your answers below to the nearest whole dollar