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Beryl's Iced Tea currently rents a bottling machine for $51,000 per year, including all maintenance expenses. It is considering purchasing a machine instead and is
Beryl's Iced Tea currently rents a bottling machine for $51,000 per year, including all maintenance expenses. It is considering purchasing a machine instead and is comparing two options: a. Purchase the machine it is currently renting for $165,000. This machine will require $23,000 per year in ongoing maintenance expenses. seven years and that they have a 10 -year life with a negligible salvage value. The marginal corporate tax rate is 30%. The NPV of renting the current machine is $ (Round to the nearest dollar.)
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