Two machines-Machine M and Machine P-are being considered in a replacement decision. Both machines have about the same purchase price and an estimated ten- year life. The company uses a 12 percent minimum rate of return as its acceptance- rejection standard. Following are the estimated net cash inflows for each machine. Year 1 2 3 4 5 Machine M 12,000 12,000 14,000 19,000 20,000 22,000 23,000 24,000 25,000 20.000 14,000 Machine P 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17.500 17.500 17,500 12.000 6 7 8 9 10 Residual value 1. Compute the present value of future cash flows for each machine. Use any present value table to ascertain the discount factors. 2. Which machine should the company purchase, assuming that both involve the same capital investment? O re