P 9-18 (similar to) Question Help Beryl's Iced Tea currently rents a bottling machine for $50,000 per year, including all maintenance expenses. It is considering purchasing a machine instead and is comparing two options a. Purchase the machine is currently renting for $160,000 This machine will require S23,000 per year in ongoing maintenance expenses b. Purchase a new more advanced machine for $200,000 This machine will require $20,000 per year in ongoing maintenance expenses and will lower bottling costs by $12.000 per year. Also, 537,000 will be spent up front to train the now operators of the machine Suppose the appropriate discount rate is 9 per you and the machine is purchased today Maintenance and botting costs are paid in the end of each year, as is the cost of the rental machine. Assume also that the machines will be depreciated via the straight line method over seven years and that they have a 10 year life with a negligible savage value. The marginal corporate tax rate is 35% Should Beryls Iced Tea continue to rent, purchase its current machine, or purchase the novenced machine? To make this decision, calculate the NPV of the FCF associated with each alternative The NPV of renting the current machine is $(Round to the nearest dollar)