Interstate Manulacturing is considering elther overhauling an old machine or replacing it with a new machtne. informatton about the wo altematives follows. Management requires a 8% rate of return on its investments. (PV of \$1, FV of \$1. PVA of S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Alternative 1: Keep the old machine and have it overhauled. This requires an inital Investment of $150,000 and resuits in $90,000 of het cash flows in each of the next five years. After five years, it can be sold for a $30,000 salvage value. Alternative 2: Sell the old machine for $40,000 and buy a new one. The new machine requires an initial investment of $295,000 and can be soid for a $10,000 salvage value in five years. It would yield cost savings and higher sales, resulting in net cash flows of $40,000 in each of the next five years. Requlred: 1. Determine the net present volue of altemative1 2. Determine the net present value of attemattve 2 3. Which alternauve should management select based on net present value? Determine the net present value of alternative 2. [Do not round intermediate calculations, Round your present value factor to 4 decimals and final answers to the nearest vihole 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 factor to 4 decimais and final answers. to the neareat whole dollar.) Which alternative should management select based on net present value