A standard electric motor is rated at 10 horsepower (HP) and costs $800. Its full-load efficiency is specified to be 92%. A newly designed, high efficiency motor of the same size has an efficiency of 95%, but costs $1,200. It is estimated that the motors will operate at a rated 10-HP output for 2,000 hours a year, and the cost of energy will be $0.07 per kilowatt-hour. Each motor is expected to have 12-year life. At the end of 12 years, the first motor will have a salvage value of $50, and the second motor will have a salvage value of $100. Consider the MARR to be 8%. (Note: 1HP = 0.7457 KW) What is the annual energy cost for the standard electric motor (understand the following answers as negative values)?