The company uses a discount rate of 10%. 14. ROC Company has two alternatives: remodel an old car paint shop or, remove the old car paint shop and install a new one. New paint car shop..............Old Paint car shop Annual Revenues.. .90,000.... 70,000 Annual operating costs... ...(30,000).. ..(25,000) 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...... A) Replace brushes at the end pf 6 years.... .175,000 ..80,000 How much is the NPV for Investing the new Paint shop & remodeling the existing Paint car shop will be? B) Analyze which alternative will have a higher NPV? (Show details of your answer) 7 Points) 15 Min