Interstate Manufacturing is considering either overhauling an old machine or replacing it with a new machine. Information about the two alternatives follows. Management requires a $10\backslash \%$ rate of return on its investments. $($PV of $\backslash$$$1,$ FV of $\backslash$$$1,$ PVA of $\backslash$$$1,$ and FVA of $\backslash$$$1)$ Note: Use appropriate factor$($s$)$ from the tables provided.

Alternative $1$: Keep the old machine and have it overhauled. This requires an initial investment of $\backslash$$$158,000$ and results in $\backslash$$$51,000$ of net cash flows in each of the next five years. After five years, it can be sold for a $\backslash$$$23,000$ salvage value.

Alternative $2$: Sell the old machine for $\backslash (\backslash$$ $42,000\backslash )$ and buy a new one. The new machine requires an initial investment of $\backslash (\backslash$$ $301,000\backslash )$ and can be sold for a $\backslash (\backslash$$ $11,000\backslash )$ salvage value in five years. It would yield cost savings and higher sales, resulting in net cash flows of $\backslash (\backslash$$ $55,000\backslash )$ 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? Determine the net present value of alternative $1.$

Note: Do not round intermediate calculations. Round your present value factor to $4$ decimals and final answers to the nearest whole dollar.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & $\backslash$begin$\{$tabular$\}\{$c$\}$

Net Cash $\backslash \backslash$

Flows

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Present Value $\backslash \backslash$

Factors at $10\backslash \%$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Present Value of $\backslash \backslash$

Cash Flows

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline Year $1-5$ & & & $\backslash \backslash$

$\backslash$hline Salvage value $($year $5)$ & & & $\backslash \backslash$

$\backslash$hline Totals & & & $\backslash \backslash$

$\backslash$hline Initial investment & & & $\backslash \backslash$

$\backslash$hline Net present value & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Determine the net present value of alternative $2.$

nent Tool iframe ve 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.