Help Save & Exit Check my Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having th machine overhauled. Information about the two alternatives follows. Management requires a 10% rate of return o investments. (PV of $1, FV 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. If the old machine is overhauled, it will be kept for ar five years and then sold for its salvage value. Cost of old machine $111, 000 Cost of overhaul 146, 000 Annual expected revenues generated 92, 000 Annual cash operating costs after overhaul 44, 000 Salvage value of old machine in 5 years 19, 000 Alternative 2: Sell the old machine and buy a new one. The new machine is more efficient and will yield substantia operating cost savings with more product being produced and sold. Cost of new machine $300, 000 Salvage value of old machine now 45, 000 Annual expected revenues generated 107 , 000 Annual cash operating costs 21, 000 Salvage value of new machine in 5 years 7, 000 APR C city