Question: how do i work through this problem Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap putification system
Blooper Industries must replace its magnoosium purification system. Quick \& Dirty Systems sells a relatively cheap putification system for $15 million. The system will last 5 years. Do-t.Right sells a sturdiet but more expensive system for $20 million; it will last for 8 years. Both systems entall $2 milition in operating costs, both will be depreclated straight-line to a final value of zero over their useful lives; netther will have any salvage value at the end of its life. The fitm's tax rate is 30%, and the discount rate is 13%. 0. What is the equivalent annual cost of investing in the cheap system? Note: Do not round intermediate calculations. Enter your answer as a positive value. Enter your answer in millions rounded to 2 decimal ploces. b. What is the equivalent annual cost of investing in the more expensive system? Note: Do not round intermediate calculations. Enter your answer as a positive value. Enter your answer in millions rounded to 2 decimal places. c. Which system should Blooper install
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