Question: Berys lood Tea current a bottling machine for $50.000 per year, including materace is considering purchasing machines and is comparing two a. Purchase the machine
Berys lood Tea current a bottling machine for $50.000 per year, including materace is considering purchasing machines and is comparing two a. Purchase the machine is cur reng for $150.000 This machine .000 prywin ongoing ma c e pense b. Purchase an e nced macho 290.000 Tha il 19.000 ngang ce w e bgco by $12.000 A 000 beserto the operators of the machine Suppose the appropriate discountatis per year and the machine is purchased today Mainterwand being costs are pad at the end of each year, the cost of the re a chine. Assume the mach be depreciated via the stra n e method over seven years and that they have a 10 year life with a negligible salvage value. The marginal corporate is 30% Should Bery's loed Tea continue to purchase its current machine, or purchase the advanced machine? To make this decision calculate the NPV of the FCF associated with each matie i l The Northern mache Round the rest do Enter your answer in the answer box and then click here des cum Purchase the machi Pucha m ore ne c h machine for you ng ma i s coming purchasing a machine and is comparing two options for $150,000. This machine will rege 25.000 per year in ongoing manance expenses e for 250.000 This mache il 519,000 per year inngang mar e s and willower boring costs by 12.000 per year. Also, 18,000 will be spent up front to train per year and the machine is purchased today Maintenance and bottling coisa padat the end of each year, the cost of the real machine. Assume so that the machines wil over even years and that they have a 10 yearfe with a gigible salva value. The marginal corporate tax rate is 38% , purchases curent machine. or purchase the advanced machine? To make this decision, calculate the NPV of the FOFasociated with each aberative s Scooter discount c a the Should Besed Tesco d The Vong the s ound to the newest dolar)
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