Fomguard LLC of South Korea developed a hightech fiber-optic fencing mesh (FOM) that contains embedded sensors that can differentiate between human and animal contact. In an effort to curtail illegal entry into the United States, a FOM fence has been proposed for some sections of the U.S.

border with Canada. The cost for erecting the fence in year 1 is expected to be $7 million, decreasing by $500,000 each year through year 5.

At an interest rate of 10% per year, what is the equivalent uniform annual cost of the fence for years 1 to 5?