1. A firm is considering purchasing an asset that will have a useful life of 15 years and cost $5 million; it will have installation costs of $500,000 and a salvage or residual value of $500,000. What is the annual straight-line depreciation for this asset?

A) $500,000 per year

B) $600,000 per year

C) $333,333 per year

D ) $700,000 per year