Berylstad Tea currently rentoa botting machine for $55.000 per year, including maintenance expenses is considering purchasing a machine instead and is comparing two options a. Purchase the machine is currently renting for $150,000. This maine will require 23.000 per year in ongoing maintenance expenses b. Purchase a new, more advanced machine for 1265.000. This machine will require 515.000 per year in ongoing maintenance penses and will lower boting costs by $15.000 per year to, 535.000 will be spent up front to wain Suppose the appropriate discounts per year and the machine is purchased today Maintenance and boring costs are paid at the end of each year, as is the cost of the rental machine Assume so that the machines will be Should Bery's load Tea continue to rent purchase is current machine purchase the advanced machine? To make this decision calculate the NPV of the FCF associated with each teave The NPV of renting the current machine is Rond to the nearest dollar) The NPV of purchasing the current machine is Round to the nearest dollar) The NPV of purchasing the advanced machine Round to the nearest dolar) Which of the following is the best choice? (Select the best choice below) O A Purchase the current machine O Purchase the advanced machine OC Rent the current machine Click to set your awers) AG CD B type here to search lipi Beryls Iced Tea currently rents a botting machine for 55.000 per year, including al maintenance expenses is considering purchasing machine instead and is comparing two options a. Purchase the machine is currently renting for $150.000 This machine will require 523.000 per year in ongoing maintenance expenses b. Purchase a new, more advanced machine for $265.000. This machine will require 515.000 per yew In ongoing maintenance penses and will lower boting costs by $15.000 per year to 535.000 will be spent up fronte al Suppose the appropriate discount rate 9 per year and the machine is purchased today Maintenance and botting costs we paid the end of each year, as is the cost of the rental machine. Assumes that the machines will be depreciated via the straight-tne method over seven years and that they have a 10-year life with a moglie salvage value. The marginal corporate tax rate Should Beryl's loed Tes continue to rent purchase is current machine or purchase the advanced machine? To make this decision calculate the NPV of the FCF associated with each teative The NPV of renting the current machine is Round to the nearest dollar) The NPV of purchasing the current machine is Round in the nearest dollar) The NPV of purchasing the advanced machine le Round to the nearest dollar) Which of the following is the best choice? (Select the best choice below) O A Purchase the current machine OB Purchase the advanced machine OC. Rent the current machine Click to select your answers) 21 A 0 tea * Type here to search