A machine costing 2,000,000 has a useful life of six years, after which time its estimated resale value will be 260,000. Running costs will be zero for the first two years of use and 90,000 for each of the next four years. These running costs are payable on the last day of the year to which they relate. Using a discount rate of 15% p.a., what is the annual equivalent cost of using the machine if it were bought A B C D E and replaced every six years in perpetuity (to the nearest 1,000)?

A 431,000

B 550,000

C567,000

D 610,000

E 626,000