#14. After paying $3 million for a feasibility study, Cougar goods wrote a proposal with the following cash flow estimates for a 10yr capital project. Equipment cost: $25 million, Shippin cost: $2 million, instalation cost: $10 million, salvage cost: $5 million, working capital investment: $2 million, revenues are expected to increase by $20 million per year and cash operating expenses by $15 million per year. The firms marginal tax rate is 20%, its weighted average cost of capital is 10% and the firm requires a 5yr payback. Assuming conventional straight line depreciation calculate the annual depreciation expense for this project.