please do required 1-3

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 10% rate of return on its investments. (PV of $1. FV of $1. PVA of S1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Alternative t: Keep the old machine and have it overhauled. This requires an initial investment of $152,000 and results in $49,000 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 $39,000 and buy a new one. The new machine requires an initial investment of $295,000 and can be sold for a $9,000 salvage value in five years. It would yield cost savings and higher sales, resulting in net cash flows of $56,000 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? Required 1 Required 2 Required 3 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 Cash Flows Present Value Factors at 10% Present Value of Cash Flows Yoar 1-5 Salvage value (year 5) Totals Initial investment Net present value Bar Required 2 > Required 1 Required 2 Required 3 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 1.0000 Totais Initial investment Net present value Required 1 Required 2 Required 3 which alternative should management select based on net present value? Management should select