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Pompei's Pizza has a delivery car that it uses for pun deliveries. The transmission needs to be replaced and there are several other repairs that

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Pompei's Pizza has a delivery car that it uses for pun deliveries. The transmission needs to be replaced and there are several other repairs that need to be done. The car is neanng the end of its life, so the options are to either overhaul the car or replace it with a new car Pompeil's has put together the following budgetary items! Present Car New Car Purchase cost new $32,000 Transmission and other repairs $8,500 Annual cash operating cost 12,500 10,000 Fair market value now 6,000 Fair market value in five years 1,000 6,000 of Pompeo's replaces the transmission of the pizza delivery vehicle, they expect to be able to use the vehicle for another 5 years. If they sell the old vehicle and purchase a new vehkle, they will use that vehide for 5 years and then trade in for another new puzza delivery vehicle. If they trade for the new delivery vehicle, the operating expenses wel decrease because the new vehide a more gas efficient and the maintenance on a new car is less. This project is analyzed using a discount rate of 12% (Click here to se present value and future valuta 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 Cor B. What should Pompe's do7 Pompes should

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