Beryis leed Tea currently rents a botting machine for $53.000 per yoar, including all maintenance expenses. it is considering purchasing a machine instead and is comparing two options: a. Purchase the machine it is currenty renting for $150,000. This machine will require $25,000 per year in ongoing mainteriance expenses. b. Purchase a new, more advanced machine for $255,000. This machine will require $15,000 per year in ongoing maintenance expenses and will lewer bolting costs by $10,000 peryear. Also, 539,000 will be spent up fromt to train the new operators of the machine. Suppose the approptiate discount rate is 9% per year and the machine is purchased today. Maintenance and boling costs are paid at the end of each year, as is the cost of the rental machine. Assume also that the machines wit be depreciated via the straigh -line method over seven years and that they have a 10 -year life with a negligble satvoge value. The marginal corporate cax rate it 30% Should Beryfs lced Tea continue to rent, purchase is current machine, oe purchase the advanced machine? To make this decisige, calculate the NPV of the FCF associated weth each atemativa. The NPV of renting the current machine is 1 (Plound to the neares dellar) Beryis leed Tea currently rents a botting machine for $53.000 per yoar, including all maintenance expenses. it is considering purchasing a machine instead and is comparing two options: a. Purchase the machine it is currenty renting for $150,000. This machine will require $25,000 per year in ongoing mainteriance expenses. b. Purchase a new, more advanced machine for $255,000. This machine will require $15,000 per year in ongoing maintenance expenses and will lewer bolting costs by $10,000 peryear. Also, 539,000 will be spent up fromt to train the new operators of the machine. Suppose the approptiate discount rate is 9% per year and the machine is purchased today. Maintenance and boling costs are paid at the end of each year, as is the cost of the rental machine. Assume also that the machines wit be depreciated via the straigh -line method over seven years and that they have a 10 -year life with a negligble satvoge value. The marginal corporate cax rate it 30% Should Beryfs lced Tea continue to rent, purchase is current machine, oe purchase the advanced machine? To make this decisige, calculate the NPV of the FCF associated weth each atemativa. The NPV of renting the current machine is 1 (Plound to the neares dellar)