Nippon Steel’s expenses for heating and cooling one of its large manufacturing facilities are expected to increase according to an arithmetic gradient beginning in year 2. The costs are expected to be $550,000 now (year 0), $550,000 in year 1, and increases by $40,000 each year through year 12. What is the equivalent annual worth in years 1–12 of the costs at an interest rate of 10% per year?