RERUPATO 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 $47,080 11,400 11,400 11,400 + replace Machine B $57,000 10.800 10. 10, 10,800 + replace These costs are expressed in real terms. Suppose that technological change is expected to reduce costs by 10% per year. There will be new machines in year 1 that cost 10% less to buy and operate than A and B. In year 2, there will be a second crop of new machines incorporating a further 10% reduction, and so on. Suppose you are Borstar's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge at the end of the first year and how would this alter in subsequent years given the expected technological changes? Assume a 10% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Answer is complete but not entirely correct. Year 1 rent $ $ Machine A 30.298.00 27.268.20 24.541 38 Year 2 rent Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to a subsequent years given the expected technological changes? Assume a 10% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Answer is complete but not entirely correct. Machine A 30.298.00 Year 1 rent 27 268 20 X Year 2 rent Year 3 rent $ 24,541.38 Answer is complete but not entirely correct. Year 1 rent Year 2 rent Year 3 rent Year 4 rent $ $ $ Machine B 28.781.00 25.902.90 23.31261 20,981 353