Please do part b,

This how you are supposed to do a similar question with different numbers but I cant figure out the FCF part.

Beryl's Iced Tea currently rents a bottling machine for $55000 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 $165000. This machine will require $23000 per year in ongoing maintenance expenses. training the new operators of the machine. depreciated via the straight-line method over seven years and that they have a ten-year life with a negligible salvage value. The marginal corporate tax rate is 40%. The NPV of renting the current machine is The NPV of purchasing the current machine is $ (Round to the nearest dollar.) (Round to the nearest dollar.) Beryl's Iced Tea currently rents a bottling machine for $56000 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 $163000. This machine will require $22500 per year in ongoing maintenance expenses. b. Purchase a new, more advanced machine for $258000. This machine will require $18750 per year in ongoing maintenance expenses and will lower bottling costs by $17000 per year. Also, $34000 will be spent up front training the new operators of the machine. Suppose the appropriate discount rate is 7.5% 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 ten-year life with a negligible salvage value. The marginal corporate tax rate is 38%. 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. The NPV of $34720 for 10 years at a discount rate of 7.5% equals - $238321, which represents the present value of the costs of this arrangement. The NPV for purchasing the current machine is found by finding the present value of the free cash flow for each of the 10 years and then subtracting the purchase price of the machine. To determine the free cash flow, use the following formula: FCF=-OperatingCosts(1taxrate)+DepreciationTaxrateCapitalExpenditures. The NPV for purchasing the advanced machine is found by finding the present value of the free cash flow for each of the 10 years and then subtracting the purchase price of the machine. To determine the free cash flow, use the following formula: FCF=OperatingCosts(1taxrate)+DepreciationTaxrateCapitalExpenditures.