6. The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $47,000 $57,000 1 11,400 10,800 2 11,400 10,800 3 11,400 10,800 4 10,800 Assume a 10% discount rate and ignore taxes. a) What is the equivalent annual cost of each machine? b) Which machine should the company buy? C1 C2 Cs 7. Machine B is expected to produce the following real cash flows: Cash Flows ($ thousands) Machine Co B -121 111 122 134 Machine C was purchased five years ago for $200,000 and produces an annual real cash flow of $75,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B either now or at the end of five years. The opportunity cost of capital is 11%. When should the company replace machine C, now or 5 years later