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Interstate Manufacturing is considering either overhauling an old machine or replacing it with a new machine Information about the two alternatives follows. Management requires a 12% rate of return on its investments (PV of Si. FV of $1. PVA of S1, and EVA of S1 (Use appropriate factor(s) from the tables provided.) Alternative 1: Keep the old machine and have it overhauled. This requires an initial investment of S151,000 and results in $47.000 of net cash flows in each of the next five years. After five years, it can be sold for a $25,000 salvage value Alternative 2: Sell the old machine for $33,000 and buy a new one. The new machine requires an initial investment of $295,000 and can be sold for a $9,000 salvage value in five years. It would yield cost savings and higher sales, resulting in net cash flows of 549.000 in each of the next five years. Required: 1. Determine the net present value of alternative 1 2. Determine the net present value of alternative 2 3. Which alternative should management select based on net present value? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the net present value of alternative 1. (Do not round intermediate calculations, Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Net Cash Present Value Present Value of Flows Factors at 12% Cash Flows Year 1-5 Salvage value year 5) Totals Initial investment Net present value Complete this question by entering your answers in the tabs below. Required 1 Reguled 2 Required 3 Determine the net present value of alternative 2. (Negative net present values should be indicated with a minus sion, Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Net Cash Present Value Present Value of Flows Factors at 12% Cash Flows Year 1-5 Salvage value-new machine Salvage value-old machine 1 0000 Totals Initial investment Net present value 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which alternative should management select based on net present value? Management should select