Interstate Manufacturing is considering either 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 8% 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.) Alternative 1: 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. Alternative 2: Sell the old machine and buy a new one. The new machine is more efficient and will yleid substanital operating cost savings with more product being produced and sold 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. Required: natarm 2. Determine the net present value of alternative 2 . Initial cash investment (net) 3. Which alternative should management select