The Rockhampton Chronicle Needs to Overhaul Its Printing Press or Buy

The Rockhampton Chronicle needs to overhaul its printing press or buy a new one.The facts have been gathered,and they are as follows:
$$\begin{array} { | l | r | r | } \hline & \text { Current Machine } & \text { New Machine } \\\hline \text { Purchase Price, New } & \$ 240000 & \$ 450000 \\\hline \text { Current book value } & 90000 & \\\hline \text { Overhaul needed now } & 120000 & \\\hline \text { Annual cash operating costs } & 210000 & 120000 \\\hline \text { Current salvage value } & 60000 & \\\hline \text { Salvage value in five years } & 15000 & 60000 \\\hline\end{array}$$
Required:
Which alternative is the most desirable with a current required rate of return of 20%? Show computations,and assume no taxes.
_____________________________________________________________________________________________
_____________________________________________________________________________________________