A company is analyzing two machines to determine which one it should purchase. The company requires a 7% rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. Machine A has a cost of $900,000, annual operating costs of $40,000, and a 4-year life. Machine B costs $1,100,000, has annual operating costs of $30,000, and has a 5-year life. Whichever machine is purchased will be replaced at the end of its useful life in perpetuity (assume that the costs are the same each time the machines are purchased). What is the equivalent annual annuity/cost for each machine and based on this cost, which machine should be purchased?