Interstate Manufacturing is considering elther 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 imvestments (PV of S1, Ey or \$1. PVA of S1, and EVA of S1) (Use approprlote foctor(s) from the tobles provided.) Alternstlve t: Keep the old machine and have it overhouled. This requires an initial investment of $145,000 and results in $70,000 of net cash flows in each of the next five years. After five years, it can be sold for a $20,000 salvage value. Alternotive 2: Sell the old machine for $40,000 and buy a new one. The new machine requites an initial investment or $300,000 and can be sold for a $10,000 salvage value in five years. It would yleld cost savings and higher sales, resuling in net cash flows of $70.000 in each of the next five years Required: 1. Determine the net present value of alternative 1 2. Determine the net present value of altematve 2. 3. Which alternative should management select based on net present value? Complete this question by entering your answers in the tabs below. Determine the net present value of altemative 1. ( Do not round intermediate ealculations. Round your present value factor to 4 deamals and final answers to the nearest whole dollar.) Determine the net present value of alternative 2. (Negative net present values should be indicated with a menus sign. Do not found intermedate calculations. Round your present value factor to 4 deciovolp and fina answers to the nearest whole dollant thich alternative should management select based on net present value