please show all steps, including the formulas.

You have been asked to evaluate two mutually exclusive earth moving pieces of equipment used during the construction of a major highway. Two different brands are being considered. Your project will require an earth-mover for a period of 6 years, however neither brand being considered has a useful life of 6 years. A rental company can provide you an equivalent earth mover for either a 1-, or a 2 years contract period. Rental includes delivery and all required maintenance. Rental expense is estimated to be $48,000 per rental year for either a 1., or a 2 year rental contract payable at the beginning of each rental year. Your company's MARR is 20% You develop the following estimates for the 6 year study period: Caterpillar - Useful Life is 4 Years Case - Useful Life is 5 years Capital Investment $122,000 Capital Investment $157,000 Estimated annual $137,000 increasing at Estimated annual $137,000 increasing revenue over 6 years 2% per year revenue over 6 years at 2% per year Estimated annual $34,000 Estimated annual $32,000 maintenance over maintenance over useful life useful life Salvage Value at end $12,200 Salvage Value at end 511,700 of useful life of useful life Rental expenses $48,000 EOY 4 and 5 Rental expense $48,000 EOY 5 a) Draw your cash flow diagrams for each of the two earth-movers being considered including rental expenses. b) Using the incremental investment analysis procedure based on incremental IRR, which earth- mover would you recommend? Draw your incremental cash flow diagram. Your decision to accept or reject any alternative must be based on incremental IRR> or or or or