c. Usually the rental payments you derived in part

(a) are just hypothetical—a way of calculating and interpreting equivalent annual cost. Suppose you actually do buy one of the machines and rent it to the production manager. How much would you actually have to charge in each future year if there is steady 8% per year inflation? [Note: The rental payments calculated in part

(a) are real cash flows. You would have to mark up those payments to cover inflation.]