When JJ and Sons was awarded a contract to pour a skyscraper€™s foundation, the father had to choose between two pieces of equipment needed to supplement pumping of concrete into foundation settings. Estimates are below. Both machines have an estimated 7-year useful life; however, MACRS depreciation is over a 5-year recovery period. The effective tax rate is 40%, and the after-tax MARR is 8% per year. Your father asked you, one of the sons, to recommend one machine.

(a) Perform the analysis by spreadsheet using after-tax PW analysis, and

(b) Plot the CFAT curves.

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CreteHelper (CH) Holster (H) Machine First cost, $ Salvage, $ CFBT, $ per year Life, years -50,000 4,000 -40,000 3,000 10,000 8,500