A company is planning to replace old equipment with new, more efficient equipment. The company spent $70,000 on a market study and consulting a few months ago. The new equipment will cost $3,000,000 and has an estimated salvage value of $500,000. In order to make the equipment operable, the company must pay $100,000 for installation and $150,000 for necessary training. With the anticipated growth due to the equipment replacement, the company has to invest $60,000 in working capital. The equipment will be depreciated via the simplified straight-line depreciation method over its 20 year life. What is the annual depreciation expense?