Question 1 The company Sul purchased a machine at a cost of $ 460,000 in 2014. Today (2020) it has two options: invest $ 40,000 in the adequacy of the machine and operate for another 6 years at the end of which its residual value will be null or replace it, today, by a more modern rented machine. If it is replaced, the used machine can be sold for $ 200,000. Consider the information below:

item	keep old machine	rent new machine
Labor ($/year)	300.000	250.000
Material Cost ($/year)	250.000	100.000
maintenance cost ($/year)	8.000	0
Rent ($/year)	0	260.000

Considering a TMA = 1.5% per month (consider monthly capitalization) What is the best option for the company?