The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the 7. following costs: Year Machine 0 $46,500 11,300 2 11,300 3 11.300 + replace 4 Machine $56,500 10.600 10,600 10.600 10,600 replace 02.4335 These costs are expressed in real terms. a. 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? Assume a 9% real discount rate and ignore taxes. (Do not round Intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Machine A Machines Annual Rental Payment 5 28,670 04 5 28,039.78 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 B for the second year? (Enter y answer as a positive value rounded to 2 decimal places.) Year 2 rental payment