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i need excel steps thanks Kettlemen Brewery produces 24 types of beer, which it sells to local restaurants and liquor stores. It currently rents all

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Kettlemen Brewery produces 24 types of beer, which it sells to local restaurants and liquor stores. It currently rents all its production equipment for $36,000 per year, paid at the beginning of each year. The company is considering purchasing equipment for its brewing operation. Which one of the following options is best for the company? Option 1) The company continues renting. It anticipates that rent will continue to be $36,000 per year for the first five years and then increase to $37,500 per year in the next three years. Option 2) Kettlemen purchases new equipment for $150,000. The equipment has a useful life of 8 years with no salvage value. Kettlemen uses the sum of years' digits method to depreciate the equipment over its useful life. The equipment will require annual maintenance of $20,000 in the first three years and $25,000 in the last 5 years. The anticipated efficiencies of the new equipment will save the company $7,200 each year on its production operations. All costs and savings are realized at the end of each year. Suppose Kettlemen uses a discount rate of 3% fbr its free cash flows and a tax rate of 21%, which is a better option for the company

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