Past & Future Semiconductor is considering the purchase of photolithography equipment that will cost $9 million. The equipment requires maintenance of $15,000 at the end of each of the next five years. After five years it will be sold for $1.500,000. Assume a cost of capital of 15% and no taxes.

What is the present value of the cost of the equipment?

What is the equivalent annual cost of the equipment? Please show all calculations!