5. Your company buys a piece of machinery for $9 million. It costs you company $0.5 million to ship and install it. The equipment has a 12-year accounting life.

a) What is the book value of the equipment 3 years after it has been purchased and installed?

b) What is the book value of the equipment 8 years after it has been purchased and installed?

c) What is the book value of the equipment 14 years after it has been purchased and installed?