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Beryss lced Tea currently rents a botting machine for $51,000 per year, including all maintenance expenses. It is considering purchasing a machine instead, and is

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Beryss lced Tea currently rents a botting 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 $160,000. This machine will require $25,000 per year in ongoing maintenance expenses B. Purchase a new, moere bdvanced machine for $255,000. This machine will require $16,000 per yoar in angoing maintenance expenses and wif lower boeting costs by $14,000 per year Aso. 540,000 will be spent uptront training the new operators of the machine. Suppose the appropriale discount rate is 9% per year and the machine is purchased today, Maintenance and botting costs are paid at the end of each year, as is the rental of the machine. Aasume Should Beryfs liced tea continue to rent, purchase its current machine, or purchase the advanced machine? To make this decision, calculate the NPV of the FCF associased with each alternative. (Note: the NPV wiri be negative, and represants the PV of the costs of the machine in each case.) The NPV of rentiog the machine is 1 (Round to the nearest dolac, Enter a negaivo NPV as a negatrve value)

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