bloopers Industries must replace the magnoslum purifcation system. Quick & Dir

bloopers Industries must replace the magnoslum purifcation system. Quick & Dirty Systems sells a reatively chepa purification system for 12 million. The
system will last 4 years. Do it Right sells a strudier but more expensive system for 13 million. It will last for 5 years. Both systems entail $2 million in
operating costs both will be depreciated strightline to a final value of zero over their useful lives neighter will have any salvage value at the end of its
life. The firm a tax rate is 35% and the discount rate is 15%

Calcualte the equivalent annual cost of each alternative

Quck and Dirty

do it right

Which system should Blooper install