Problem 6-26 Mutually exclusive investments and project lives The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have following costs Machines Year Machine 565,500 10.200 11.100 replace 10,200 These costs are expressed in real terms. a. Suppose you are Borstai's financial manager. If you had to buy one or the other machine and rent to the production manager that machine's economic life, what annual rental payment would you have to charge? Assume a 7% real discount rate and ignore taxes. Do not round Intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Annual Rental Payment Machines b. Which machine should Borstal buy? Machine A Machine B c. If there is steady 5% per year inflation, what will be the annual rental payment for machine for the second year? (Enter your answer as a positive value rounded to 2 decimal places.) Year 2 rental payment