(4 points) James Pendrick has a savings account that pays an effective annual interest rate of 3.5%. Mr. Pendrick wants to buy a machine that generates $10,400 in revenue per year and has a lifetime of 9 years, with no salvage value. He is offered a loan to purchase the machine at an effective annual interest rate of 5.75%. Mr. Pendrick is to make annual interest-only payments, and then a lump sum payment of principal at the end of the 9th year. What is the highest price that Mr. Pendrick should pay for the machine? Answer = $ (4 points) James Pendrick has a savings account that pays an effective annual interest rate of 3.5%. Mr. Pendrick wants to buy a machine that generates $10,400 in revenue per year and has a lifetime of 9 years, with no salvage value. He is offered a loan to purchase the machine at an effective annual interest rate of 5.75%. Mr. Pendrick is to make annual interest-only payments, and then a lump sum payment of principal at the end of the 9th year. What is the highest price that Mr. Pendrick should pay for the machine? Answer = $