?Beryl's Iced Tea currently rents a bottling machine for $51,000 per? year, including all maintenance expenses. It isconsidering purchasing a machine instead and is comparing two?options:

a. Purchase the machine it is currently renting for $ 160,000.This machine will require $ 20,000 per year in ongoing maintenanceexpenses.

b. Purchase a? new, more advanced machine for $ 260,000. Thismachine will require $ 16,000 per year in ongoing maintenanceexpenses and will lower bottling costs by $ 13,000 per year.? Also,$ 37,000 will be spent up front to train the new operators of themachine. Suppose the appropriate discount rate is 8 % per year andthe machine is purchased today. Maintenance and bottling costs arepaid at the end of each? year, as is the cost of the rentalmachine. Assume also that the machines will be depreciated via the?straight-line method over seven years and that they have a? 10-yearlife with a negligible salvage value. The marginal corporate taxrate is 35 %. Should? Beryl's Iced Tea continue to? rent, purchaseits current? machine, or purchase the advanced? machine? To makethis? decision, calculate the NPV of the FCF associated with eachalternative.

The NPV of renting the current machine is ?$___. (Round to thenearest? dollar.)

The NPV of purchasing the current machine is ?$____. ?(Round tothe nearest? dollar.)

The NPV of purchasing the advanced machine is $____. ?(Round tothe nearest? dollar.)

Which of the following is the best? choice? ?(Select the bestchoice? below.)

A. Purchase the advanced machine.

B.Rent the current machine.

C. Purchase the current machine.