EIF Manufacturing company needs to overhaul its drill press or buy a new one. The facts have been gathered, and are as follows: Current New $100,000 machine $80,000 30,000 40,000 Annual cash operating costs 70,000 20,000 5,000 Purchase price, new Current book value Overhaul needed now 40,000 Current salvage value Salvage value in five years 20,000 Required: Based on present value analysis, which alternative is the most desirable with a current required rate of return of 20 percent? Show computations, ignore tax effect