Dawg$$s Ice Cream currently rents an ice$-$cream machine. The currently renting ice cream machine generates $$12,000$ cash flows per year. It hired a consulting firm to research if buying a machine would be a better option for the company and paid $$10,000$ for the research. The consulting company suggested the following options,

I. Purchase the machine it is currently renting for $$100,000.$ This option is expected to increase a firm$$s sales by $$70,000$ annually and increase its expenses by $$20,000$ annually. This machine will be sold for $$30,000$ at the end of the project life.

II$.$ Purchase a new, more advanced machine for $$150,000.$ This option is expected to increase a firm$$s sales by $$100,000$ annually and increase its expenses by $$22,000$ annually. Also, $$25,000$ will be spent upfront in inventory for this machine. This machine will be sold for $$35,000$ at the project life.

Assume also that the machines will be depreciated via the straight$-$line method over $10$ years and that they have a ten$-$year life. The corporate tax rate is $40\%.$ The required interest rate is $10\%.$

Should ABC Iceam continue to rent, purchase its current machine, or purchase the advanced machine? Your answer must be based on NPV for a$)$ continue to rent, b$)$ purchase the current machine at $$100,000,$ and c$)$ purchase a new advanced machine at $$150,000.$