Pompei's Pizza has a delivery car that it uses for pizza deliveries. The transmission needs to be replaced and there are several other repairs that need to be done. The car is nearing the end of its life, so the eptions are to either overhaul the car or replace it with a new cer. Pompeir's has put together the following budgetary items: Purchase cost new Transmission and other repairs Present Car New Car $30,000 $8,000 12,500 11,000 Annual cash operating cost Fair market value now Fair market valge in five years 4,000 1,000 1,000 If Pompei's replaces the transmission of the pizza delivery vehice, they expect to be able to use the vehicle for another 5 years. If they sell the old vehide and purchase a new vehicle, they will use that vehicle f years and then trade it in for another new pizza delivery vehicle. If they trade for the new delivery vehide, their operating expenses will decrease because the new vehicle is more gas efficient and the maintenance in a new car is less. This project is analyzed using a discount rate of 22% (Click here to se prent.value.and.t A. Calculate the NPV on both Cars. Round your present value factor to three decimal places and the rest to nearest dollar. Present Car New Car B. What should Pompei's do Pompell's should retain the present car Check My Mak Determine the net present value for all cash flows for both options. What option would cost less