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 8% rate of return on its investments.

Alternative 1: Keep the old machine and have it overhauled. This requires an initial investment of $147,000 and results in $42,000 of net cash flows in each of the next five years. After five years, it can be sold for a $23,000 salvage value. Alternative 2: Sell the old machine for $33,000 and buy a new one. The new machine requires an initial investment of $294,000 and can be sold for a $11,000 salvage value in five years. It would yield cost savings and higher sales, resulting in net cash flows of $49,000 in each of the next five years.

Determine the net present value of alternative 1 . (Do not round intermec 4 decimals and final answers to the nearest whole dollar.) Determine the net present value of alternative 2 . (Negative net present values sh round intermediate calculations. Round your present value factor to 4 decimals a