Yоu аre cоnducting аn ecоnomic аnalysis for a proposed project. Currently your company subcontracts the repair of gas turbine engines to an external supplier at $40,000 per engine, each year. The proposed project will allow your company to do the repairs in-house. A repair shop must be built at a cost of $500,000, with a life of 10 years and a salvage value of $100,000 at the end of its life. Once built, your company could do the repair work at a cost of $30,000 per engine, each year. Your company's MARR on these types of projects is 8% per year. The capital recovery cost for the production facility is closest to: