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 $10\%$ rate of return on its investments. $($PV of $$1,FV$ of $$1,$ PVA of $$1,$ and FVA of $$1)$ Note: Use appropriate factor$($s$)$ from the tables provided.

Alternative $1$: Keep the old machine and have it overhauled. This requires an initial investment of $$154,000$ and results in $$52,000$ of net cash flows in each of the next five years. After five years, it can be sold for a $$20,000$ salvage value.

Alternative $2$: Sell the old machine for $$41,000$ and buy a new one. The new machine requires an initial investment of $$291,000$ and can be sold for a $$12,000$ salvage value in five years. It would yield cost savings and higher sales, resulting in net cash flows of $$43,000$ in each of the next five years.

Required:

Determine the net present value of alternative $1.$

Determine the net present value of alternative $2.$

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 $2.$

Note: Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to $4$ decimals and final answers to the nearest whole dollar.

$\backslash$table$[[$Year $1-5,\backslash$table$[[$Net Cash$],[$Flows$]],\backslash$table$[[$Present Value$],[$Factors at $10\%]],\backslash$table$[[$Present Value of$],[$Cash Flows$]]],[$Salvage value$-$new machine,,,$],[$Salvage value$-$old machine,,,$],[$Totals$,,,],[$Initial investment,,,$],[$Net present value,,,$]]$

Complete this question by entering your ahswers in the tabs below.

Required $1$

Required $2$

Required $3$

Which alternative should management select based on net present value?

Management should select

PLEASE SOLVE ON A TABLE LKE SHOWN IN THE PICTURE PLEASE!!!!!!