A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital heliport project is 1.9. If the initial cost is $1.3 million and the annual benefits are $105,000, what is the amount of the annual M&O costs used in the calculation? The report stated that a discount rate of 6% per year and an estimated life of 25 years were used.

The M&O cost is $