Question: Find a) NPV (rent the machine) is $ b) The NPV (purchase the current machine) is $ c) the NPV (purchase the advanced machine) is
Big Rock 8rewery curranty reots a bottling machine for $4,000 per yoat, including at maimenance empenses, The compary is connidering purchating a machine instead and is comparing two cotions: a. Purchase the machice it is currenfy resting for $165,000. This machine wil require $23,000 per year in ongoing maintenance expenses. $35,000 will be spent uptront in training the new operatorn of the machine Should Big Rock Brewery continue to rent, purchase its current machine, or purchose the astuanced machine? The NPV (rent the machine) is: (Round to the nearest dolat)
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