Question: please help! thank you :) Homework: Chapter 9 Homework Question 4, P 9-18 (similar to) HW Score: 91.67, 5.5 of 6 points Put 14 Points:

Homework: Chapter 9 Homework Question 4, P 9-18 (similar to) HW Score: 91.67, 5.5 of 6 points Put 14 Points: 0.5 of 1 Save Bey's Teamet ventes botting machine for 550.000 per year, muding all maintenance expenses. It is considering purchasing a machine instead and is comparing the options 2. Purchase the machine is currently renting for $160.000. This machine will require 120.000 per year in ongoing maintenance apenas 1. Purchase a more avanced machine for $250,000. The machine will require 519.000 per year in ongoing maintenance expenses and willower boeting costs by $10,000 per yearAlso, 58,000 will be spent option to the operators of the machine Supore the propriate count est le 75 per year and the machine is purchased today Maintenance and bottling costs are paid the end of each year, the cost of the mental machine. Assumes at the machines wil be deprecat va te strane method aver seven years and that they have a 10-year it with a neigtige value. The marginal comporte tarate is 10% Brods Bertelend Tea continue to rent purchase is current machine or purchase the danced machine? To make the decision, caldate the NPV of FCFood we each went The Pot resting to the machine and terra do) = Homework: Chapter 9 Homework Question 4, P 9-18 (similart Part 1 of 4 Beryl's Iced Tea currently rents a bottling machine for $50,000 per year, including all maintenance expenses. It is considering purchasing a a. Purchase the machine it is currently renting for $160,000. This machine will require $24,000 per year in ongoing maintenance expenses b. Purchase a new, more advanced machine for $250,000. This machine will require $19,000 per year in ongoing maintenance expenses a operators of the machine. Suppose the appropriate discount rate is 7% per year and the machine is purchased today. Maintenance and bottling costs are paid at the e 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 re 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 renting the current machine is $. (Round to the nearest dollar.)
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