Problem $9-16$ Project Evaluation $($LO$2)$

Blooper Indu$$tries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap purification system for $$10$ million. The system will last $5$ years. Do$-$lt$-$Right sells a sturdier but more expensive system for $$12$ million; it will last for $6$ years. Both systems entail $$3$ million in operating costs; both will be depreciated 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 $14\%.$

a$.$ 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 places.

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 ins$$all$?$

$\backslash$table$[[$a$.$ Equivalent annual cost,,millions$],[$b$.$ Equivalent annual cost,,millions$],[$c$.$ Which system should Blooper install?,,$]]$