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. The estimated net cash inflows for each machine follow. Year Machine M Machine P 1 $12,000 $17,500 2 12,000 17,500 3 14,000 17,500 4 19,000 17,500 5 20,000 17,500 6 22,000 17,500 7 23,000 17,500 8 24,000 17,500 9 25,000 17,500 10 20,000 17,500 Residual value 14,000 12,000 1. Compute the present value of future cash flows for each machine, using Table 1 and Table 2.