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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
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; however, MACRS depreciation is over a 5-year recovery period. The effective tax rate is 40%, and the after-tax MARR is 7% per year. Your father asked you, one of the sons, to recommend one machine. Perform the after-tax PW analysis
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