A company wants to purchase a new front end loader. The Caterpillar model costs $356,780 out the door. The company can make a $20,000 down payment on the loader and finance the balance of the purchase price using a loan from Caterpillar that has a 12% APR and by making monthly payments. The company expects that the loader will cost them $1,011 per day in expenses to operate on a 5 day per week, 50 weeks per year basis and that these costs will escalate an average of $25 per year. They expect that this loader will create a benefit to the company by increasing their production rate which will save them $720 per day for the same work times. They estimate that they can sell the loader at the end of 10 years for $85,000. The daily costs can be added to calculate the annual costs assuming a 365 days per year. What is the annual cost to own the Caterpillar loader over its useful 10 years if the long term annual cost of money is 8% and they obtain a 10 year loan that pays off the loan completely at the end of the 10 years?