Yоu аre perfоrming аn ecоnomic аnalysis for a proposed maintenance project. Currently the maintenance work is performed by an outside contractor, at $40,000 per machine, per year. To do the work internally, your company must build a maintenance shop at a cost of $500,000. The maintenance shop has a life of 15 years, with a salvage value of $100,000 at the end of its life. Once built, your company could do the maintenance work at a cost of $30,000 per machine, per year. The MARR is 10%. The capital recovery cost for the new maintenance shop is closest to: