1. (20 Points) (a) Choose the best machine based on annual cash flow analysis. The market interest rate is 26 % and inflation is 5 % Machine-X Machine-Y S8,000 Initial Cost $6,000 Annual Maintenance Cost $0 $150 S0 $1,000 Salvage Value Useful Life 5 years 12 years today's economy it is predicted that inflation will escalate to 10% in 2 years. At 15% nominal interest rate, how much a product that costs $125 today will cost in 2 years? Based o