9. Rent scenarios a. Linda Peddler owns a bicycle factory. She could either rent or buy a machine to increase her factory's production capacity. She can rent the machine for its expected life of 10 years for 120 payments of $2,000, due at the end of each month. The appropriate annual discount rate for the payments is 6.50%. At what price should Ms. Peddler be indifferent between renting and purchasing the machine? b. How does your answer to item a change if the annual discount rate moves to 5.80%? C. The DLW Group signs a commercial lease for office space. Under the terms of the lease, DLW will pay $10,000 in rent at the beginning of each month for five years. The proper annual discount rate for this stream of payments is 8.80%. What is the present value of DLW's obligation under the lease? d. How does your answer to item c. change if the annual interest rate changes to 10.20%