Calculate the NPV using a Cost of Capital 7.65%

-First, the firm can rent a machine for the next 10 years at $60,000 per year. They will also hire a consultant for $5,000 per year.

-Second, the firm can purchase a normal machine for $170,000 that will work for the next 10 years. The depreciation will be reported using a straight-line method. The maintenance will be $22,000 per year. It will have a salvage value of $10,000 at year 10.

-Third, the firm can purchase an advanced machine for $300,000 that will work for the next 10 years. The depreciation will be reported using a straight-line method. The maintenance will be $12,000 per year. The cost will be lower by $8,000 per year. There will be a $30,000 cost at t=0 to train workers on how to use the machine.

Which is the best option?

Please provide the income statement of the project with all items in the income statement for each year until the end of the project. (You have just to consider the amounts each year for the project only.)