rate is 8. Should Kinky buy the machine? (LO2) 24. Project Evaluation. Blooper Industries must replace its magnoosium purification system. Quick & Diny 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 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 35%, and the discount rate is 12%. Which system should Blooper install? (Hint: Check the discussion of equivalent annual annuities in the previous chapter.) (L02) 25. Project Evaluation. The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is $25 Year 1 2 Unit Sales 22.000 30,000 14,000 5,000 0 3 4 Thereafter