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blooper industries must replace its magnoosium purification system. quick and drity systems sells a relativley cheap purification system for 1 5 $ million. the system
blooper industries must replace its magnoosium purification system. quick and drity systems sells a relativley cheap purification system for $ million. the system will last years. doitright sells a sturdier but more expensive system for $ million; it will last for years. both systems entail $ million in operating costs; both will be depreciated stirghtline to a final value of zero over their usseful lifes; neither will have any slavage value at the end of its life. the firms tax rate is and the discount rate is
a what is the equivlant annual cost of investing in the cheap system?
b what is the equivalent annual cost of investing in the more expenstive system?
c which system should blooper install?
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