EIF Manufacturing Company Needs to Overhaul Its Drill Press or Buy

EIF Manufacturing Company needs to overhaul its drill press or buy a new one.The facts have been gathered,and they are as follows:
$$\begin{array} { | l | r | r | } \hline & \text { Current Machine } & \text { New Machine } \\\hline \text { Purchase Price, New } & \$ 88,000 & \$ 110,000 \\\hline \text { Current book value } & 33,000 & \\\hline \text { Overhaul needed now } & 44,000 & \\\hline \text { Annual cash operating costs } & 77,000 & 44,000 \\\hline \text { Current salvage value } & 22,000 & \\\hline \text { Salvage value in five years } & 5,500 & 22,000 \\\hline\end{array}$$ Required:
Which alternative is the most desirable with a current required rate of return of 20%? Show computations,and assume no taxes.