Question: Beryl's lced Tea currently rents a bottling machine for $ 5 3 , 0 0 0 per year, including all maintenance expenses. It is considering
Beryl's lced Tea currently rents a bottling machine for $ 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 $ This machine will require $ per year in ongoing maintenance expenses. 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.
The NPV of renting the machine is $Round to the nearest dollar. Enter a negative NPV as a negative value.
The NPV of purchasing the current machine is $ Round to the nearest dollar. Enter a negative NPV as a negative value.
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