?Beryl's Iced Tea currently rents a bottling machine for $52,000 per? year, including all maintenance expenses....

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?Beryl's Iced Tea currently rents a bottling machine for $52,000per? year, including all maintenance expenses. It is consideringpurchasing a machine? instead, and is comparing two? options:
A. Purchase the machine it is currently renting for$155,000.This machine will require $22,000 per year in ongoingmaintenance expenses.
B. Purchase a? new, more advanced machine for $255,000 Thismachine will require $18,000 per year in ongoing maintenanceexpenses and will lower bottling costs by $14,000 per year.? Also,$38,000 will be spent upfront training the new operators of themachine. Suppose the appropriate discount rate is 7 % per year andthe machine is purchased today. Maintenance and bottling costs arepaid at the end of each? year, as is the rental of the machine.Assume also that the machines will be depreciated via the?straight-line method over seven years and that they have a?ten-year life with a negligible salvage value. The marginalcorporate tax rate is 35 % Should? Beryl's Iced Tea continue to?rent, purchase its current? machine, or purchase the advanced?machine? To make this?decision, calculate the NPV of the FCFassociated with each alternative.? (Note: the NPV will be?negative, and represents the PV of the costs of the machine ineach? case.)
__________________________.
The NPV of renting the machine is $(Round to the nearestdollar. Enter a negative NPV as a negative? value.)
The NPV of option A is $(Round to the nearest dollar.Enter a negative NPV as a negative? value.)
The NPV of option B is $?(Round to the nearest dollar.Enter a negative NPV as a negative? value.)
Which of the following is the best? choice? ? (Select the bestchoice? below.)
(A) Rent the advanced machine.
(B)Purchase the current machinePurchase the current machine.
(C) Rent the current machineRent the current machine.
(D) Purchase the advanced machinePurchase the advancedmachine.

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?Beryl's Iced Tea currently rents a bottling machine for $52,000per? year, including all maintenance expenses. It is consideringpurchasing a machine? instead, and is comparing two? options:A. Purchase the machine it is currently renting for$155,000.This machine will require $22,000 per year in ongoingmaintenance expenses.B. Purchase a? new, more advanced machine for $255,000 Thismachine will require $18,000 per year in ongoing maintenanceexpenses and will lower bottling costs by $14,000 per year.? Also,$38,000 will be spent upfront training the new operators of themachine. Suppose the appropriate discount rate is 7 % per year andthe machine is purchased today. Maintenance and bottling costs arepaid at the end of each? year, as is the rental of the machine.Assume also that the machines will be depreciated via the?straight-line method over seven years and that they have a?ten-year life with a negligible salvage value. The marginalcorporate tax rate is 35 % Should? Beryl's Iced Tea continue to?rent, purchase its current? machine, or purchase the advanced?machine? To make this?decision, calculate the NPV of the FCFassociated with each alternative.? (Note: the NPV will be?negative, and represents the PV of the costs of the machine ineach? case.)________________________________.The NPV of renting the machine is $______(Round to the nearestdollar. Enter a negative NPV as a negative? value.)The NPV of option A is $______(Round to the nearest dollar.Enter a negative NPV as a negative? value.)The NPV of option B is $______?(Round to the nearest dollar.Enter a negative NPV as a negative? value.)Which of the following is the best? choice? ? (Select the bestchoice? below.)(A) Rent the advanced machine.(B)Purchase the current machinePurchase the current machine.(C) Rent the current machineRent the current machine.(D) Purchase the advanced machinePurchase the advancedmachine.