Beryl's Iced Tea currently rents a bottling machine for $ $51000$ per$$ year, including all maintenance expenses. It is considering purchasing a machine$$ instead, and is comparing two$$ options:

a$.$ Purchase the machine it is currently renting for $ $155000.$ This machine will require $ $21000$ per year in ongoing maintenance expenses.

b$.$ Purchase a$$ new, more advanced machine for $ $255000.$ This machine will require $ $16000$ per year in ongoing maintenance expenses and will lower bottling costs by $ $14000$ per year.$$ Also, $ $38000$ will be spent upfront training the new operators of the machine.

Suppose the appropriate discount rate is $8\%$ per year and the machine is purchased today. Maintenance and bottling costs are paid 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$10-$year life with a negligible salvage value. The corporate tax rate is $30\%.$ Should$$ Beryl's Iced Tea continue to$$ rent, purchase its current$$ machine, or purchase the advanced$$ machine? Note$$: To make this$$ decision, calculate the NPV of the FCF associated with each alternative. The NPV will be$$ negative, and represents the PV of the costs of the machine in each case.