A food manufacturer, Jaguar Foods is considering the purchase of a new canning machine to assist in the production of canned beans. The machine costs $701,200. It has an expected life of 11 years at which time its salvage value will be $71,100. The estimated operating and maintenance expenses are $11,005 per year. In lieu of purchasing the canning machine, Jaguar must pay Silvery Cannery $80,000 per year to can the beans for them. If Jaguar enters an agreement with the cannery, they must pay a $10,000 start-up fee. If Jaguar Foods buys the machine, they will not need to have their beans canned by the Silver Cannery. Jaguar Foods must borrow half of the purchase price, but they cannot start repaying the loan for 3 years. The bank has agreed to 4 equal payments, made every year with the 1st payment due at the end of year 3. The loan interest rate is 8 percent compounded annually. Jaguar Foods MARR is 10 percent compounded annually. Utilizing an annual cash-flow analysis determine which mutually exclusive water canning option Jaguar Beans should select. Why?