I need help figuring out what the "i" in problem 1 is, what's the "now" in problem 2, as well as the blank spaces between the "present value of cash inflows" and "net present value" for both plz

Interstate Manufacturing is considering elther 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 10% rate of return on Its Investments. (PV of $1. FV of $1. PVA of $1. and FVA of $1 (Use appropriate factor(s) from the tables provided.) Alternativet 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 $112,eee 150,000 95,000 42,899 15,899 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 Answer is not complete. $ 150,000 Determine the represent value of altemadive 1. Initial cash investment (net) Chart values are based on: i = || Subsequent Year Cash inflow (outflow) 1 $ 53,000 X 2 53,000 3 1 53,000 XT 4 53,000x 68,000 Table factor Present Value 0.9091 0.8264 0.7513 0.6830 0.8209 48,182 43.799 39,819 36,199 42,221 210,220 = Present value of cash inflows $ 210,220 150.000 60.220 Net present value Initial cash investment (net) Chat are based on 150,000 Table Factor Present Value Subsegast Cash in outilow) $ 53,000x 5 3.000 To 0 182 2 8 olo 1 .9091 = 0.8254= 0.7513 = 1 0.6830 = 0.8209 = 4 5 M ID NOT IS m3 31818 1818 181818181 81818R10111 XXXXX 2 TI OOTD Present value of cash inflows S 2 Net present value $ 88N8 81888 2. Determine the net present value of alternative 2. Initial cash investment (net) 52 Subsequent Year Cash inflow X Table factor = Present Value (outflow) 1 5 88.000 0.9091 = 5 61,819 2 8 8.000 0.8284 58.195 DBS IN co 4 5 Now 68.000 88,000 0.6830 = 0.6209 223 819 e INNIN lol 18181 - Present value of cash inflows 1815) Net present value 3. Which alternative should management $ 271,000 Table factor Present Value = 2. Determine the net present value of altemalive 2 Initial cash investment (net) Subsequent Year Cash inflow (outflow 1 $ 68,000 2 68,000 x 88,000 UN 4 68.000 TX 5 88.000 OK Now 0.9091 0.8284 0.7518 0.8830 0.6209 61,819 58.195 51.088 = = 54.639 270.185 Present value of cash inflows $ 270.185 271.000 Net present va ue 3. Which alternative should management select Management should select Aternative 1