A small manufacturing firm is considering purchasing a new boring machine to modernize one of its production lines. Two types of boring machine are available on the market. The machines are described by the following characteristics:

Item

Machine A

Machine B

First cost

$ 7,288

$ 9,721

Service life

8 years

10 years

Salvage value

$ 622

$ 1,046

Annual O&M costs

$729

$ 523

CCA rate

30%

30%

Determine the break-even annual O&M costs for machine A so that the present worth of machine A is the same as that of machine B. Use a MARR (after tax) of 10% and a marginal tax rate of 30%.

(Note: Don't use the $ sign in your answer and round it to 2 decimal places)