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:a

Year Machine A Machine B

$0$ $ $49,000$ $ $59,000$

$111,80011,600$

$211,80011,600$

$311,800+$ replace $11,600$

$411,600+$ replace

These costs are expressed in real terms.

a$.$ Suppose you are Borstal$$s financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine$$s economic life, what annual rental payment would you have to charge? Assume a $12\%$ real discount rate and ignore taxes.

Note: Do not round intermediate calculations. Enter your answers as a positive value rounded to $2$ decimal places.

b$.$ Which machine should Borstal buy?

Ic$.$ if there is steady $6\%$ per year inflation, what will be the annual rental payment for machine B for the second year?

Note: Enter your answer as a positive value rounded to $2$ decimal places.