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Please help also if you can find the Purchased the advance machine value aswell. Big Rock Brewery currently ronts a botting machine for $52.000 per

Please help also if you can find the Purchased the advance machine value aswell. image text in transcribed
Big Rock Brewery currently ronts a botting machine for $52.000 per year, including al maintenance expenses. The company is considering purchasing a fractine instead and is comparing to alternate options: option a is to purchase the machine it is currently renting for $156,000, which will require $25,000 per year in ongoing maintenance expenses or option, which is to purchase a new, more advanced machine for $255,000, which will require $10,000 per year in ongoing maintenance expenses and will lower botting costs by $14.000 per you. Also 339,000 will be spent upfront in training the new operators of the machine. Suppose the appropriate discount rate is 8% per year and the machine is purchased today Maintenance and botting costs are paid at the end of each year, as is the rental of the machine. Assume also that the machines are subject to a CCA rule of 48% and there will be a negligible salvage value in 10 years time the and elsach machine's life). The marginal corporate tax rate is 40%. Should Big Rock Brewery continue to ront, purchase is current machine, or purchase the 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 cont of the machine in each coo) The NPV (ront the machine) is $209356. (Round to the nearest dollar) The NPV (purchase the current machine) in $(Round to the nearna dolar)

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