currently rents a bottling machine for $$55,000$ per$$ 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 $$165,000.$ This machine will require $$22,000$ per year in ongoing maintenance expenses.

b$.$ Purchase a$$ new, more advanced machine for $$265,000.$ This machine will require $$17,000$ per year in ongoing maintenance expenses and will lower bottling costs by $$15,000$ per year.$$ Also, $$37,000$ will be spent up front to train 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$$ year, as is the cost of the rental machine. Assume also that the machines will be depreciated via the$$ straight$-$line method over seven years and that they have a$10-$year life with a negligible salvage value. The marginal corporate tax rate is $30\%.$

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 FCF associated with each alternative.