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 teturn on its investments. (PV of $1. FV of $1. PVA of 51 and EVA of $1) (Use appropriate factor(s) from the tables provided.) Alternative 1: Keep the old machine and have it overhauled. This requires an initial investment of $155.000 and results in $44,000 of net cash flows in each of the next five years After five years, it can be sold for a $19,000 salvage value Alternative 2: Sell the old machine for $36,000 and buy a new one. The new machine requires an initial investment of $292,000 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 $52,000 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 a 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 Casti Flows Present Value Factors at 10% Present Value of Cash Flows Year 1-5 Salvage value (year 5) Totals Initial investment Nel present value 0 Hemd Required 2 > Required 1 Required 2 Required a Determine the net present value of alternative 2. (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.) Net Cash Present Value Present Value of Flows Factors at 10% Cash Flows Year 1-5 Salvage value-new machine Salvage value-old machine 10000 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