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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:

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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: These costs are expressed in real terms. a. Suppose you are Borstal's financial maragec. If you had to buy one or the other mochine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 6% real discount rate and ighore. taxots. Note: Do not round Intermediate calculations. Enter your answers as a positlve value rounded to 2 decimal places. b. Which machine should Borstal buy? c. If there is steady 8% per year infation, whot will be the annual rental payment for machine B for the second year? Note: Enter your answer as a positlve value rounded to 2 decimal places

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