Problem 24-6A (Algo) Net present value of alternate investments LOP3 Interstate Manufacturing is considering either overhauling an old machine or replacing it with a new machine. Information about the wo alternatives follows. Management requires a 8% rate of return on its investments. (PV af $1. EV of $1. PVA of $1, 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 $143,000 and results in $38,000 of net cosh flows in each of the next five years. After five years, it can be sold for a $25.000 salvage value, Alternative 2: Sell the old machine for $47,000 and buy a new one. The new machine requires an initial investment of $298,000 and can be sold for a $10.000 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. Desermine the net presont value of alternative 1 2. Determine the net present value of alternative 2 . 3. Which olternative should management select based on het present volue? Complete this question by entering your answers in the tabs below. Determine the net present value of alternative 1. (Do not round intermediate calculations. Round your present value factor 4 decimals 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 minus sign. Do not round intermediate calculations. Round your present value factorto 4 decimals and final answers to the nearest whole dollar.)