Everything is correct but I can't seem to figure out the "Now" in part 2. Determine the net present value of alternative 2.

Please help with the incorrect value (marked with a red X)! Thank you!!

Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management requires a 8% rate of return on its investments. (PV of S1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Alternative 1: Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another five years and then sold for its salvage value. Cost of old machine Cost of overhaul Annual expected revenues generated Annual cash operating costs after overhaul Salvage value of old machine in 5 years $120,000 152,800 87,000 50,000 23,000 Alternative 2: Sell the old machine and buy a new one. The new machine is more efficient and will yield substantial operating cost savings with more product being produced and sold. Cost of new machine Salvage value of old machine now Annual expected revenues generated Annual cash operating costs Salvage value of new machine in 5 years $310,000 34,000 119,000 32,000 12,000 $ 310,000 Table factor = Present Value $ 2. Determine the net present value of alternative 2. Initial cash investment (net) Subsequent Year Cash inflow (outflow) 1 $ 87,000 X 2 87,000 3 87,000 4 87,000 5 99,000 Now 0.9259 0.8573 N 0.7938 80,553 74,585 69,061 63,945 67,379 0 355,523 0.7350 0.6806 + $ $ Present value of cash inflows Present value of cash outflows Net present value 3. Which alternative should management select? Management should select: 355,523 310,000 45,523 Alternative 2