(Replacement chains) Destination Hotels currently owns an older hotel on the best beachfront property on Hilton Head Island, and it is considering either remodeling the hotel or tearing it down and building a new convention hotel, but because both hotels would occupy the same physical location, the company can only choose one projectthat is, these are mutually exclusive projects. Both of these projects have the same initial outlay of $700,000. The first project, since it is a remodel of an existing hotel, has an expected life of 10 years and will provide free cash flows of $150,000 at the end of each year for all 10 years. In addition, this project can be repeated at the end of 10 years at the same cost and with the same set of future cash flows. The proposed new convention hotel has an expected life of 20 years and will produce free cash flows of $105,000 per year. The required rate of return on both of these projects is 10 percent. Calculate the NPV using replacement chains to compare these two projects. The NPV of remodeling the existing hotel is $. (Round to the nearest dollar.) The NPV of building a new hotel is (Round to the nearest dollar.) Destination Hotels should (Select from the drop-down menu.)