Midnight Oil and Gas Midnight Oil and Gas is considering building a pipeline from a remote source of gas with only a 10-year supply of reserves. This qualies the pipeline for a GGA rate of 20 percent rather than the normal 4 percent. The pipeline will cost $1 million: accompanying buildings will cost another $200,000. The buildings are lGlass 1 with a CGA rate of 4 percent- Midnight Oil and Gas will use land it acquired eight years ago to assemble this project. The land was purchased for $500,000, and it is now worth $2 million. Annual cash ows before amortization from the pipeline and taxes for the 10year period are estimated at $625,000. In 10 years the buildings and pipeline will he worthless, but the land will be worth $4.5 million. Environmental clean-up costs at the end of the project are expected to be $1.2 million. Midnight Oil and Gas has a tax rate of 42 percent, and its cost of capital is 14 percent. Capital gains are taxed at 50 percent of the gain. Should Midnight Oil and Gas build the pipeline