16. Project Evaluation. Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap purification system for $10 million. The system will last 5 years. Do-It-Right sells a sturdier but more expensive system for $12 million; it will last for 8 years. Both systems entail $1 million in operating costs; both will be deprecisted straight-line to a final value of zero over their useful lives; neither will have any salvage value at the end of its life. The firm's tax rate is 30 %, and the discount rate is 12%. (Hint: Check the discussion of equivalent annual annuities in the previous chapter.) (LO9-2) a. What is the equivalent annual cost of investing in the cheap system? h What is the equivalent annual cost of investing in the more expensive system? c. Which system should Blooper install