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Big Rock Brewery currently rents a bottling machine for $51,000 per year, including all maintenance expenses. The company is considering purchasing a machine instead and

image text in transcribed Big Rock Brewery currently rents a bottling machine for $51,000 per year, including all maintenance expenses. The company 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 $22,000 per year in ongoing maintenance expenses. operators of the machine. advanced machine? To make this decision, calculate the NPV of the FCF associated with each alternative. (Note: the NPV will be negative, and represents the PV of the costs of the machine in each case.) The NPV (rent the machine) is $. (Round to the nearest dollar.) The NPV (purchase the current machine) is $ (Round to the nearest dollar.) The NPV (purchase the advanced machine) is $ (Round to the nearest dollar.) Which of the following is the best choice? A. Purchase the advanced machine. B. Rent the current machine. C. Purchase the current machine

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