Gluon Inc. is considering the purchase of a new high pressure glueball, It can purchase the glueball for $20,000 and sell its old low-pressure glueball. which is fully depreciated, for $3,000. The new equipment has a 10-year useful life and will save $5,000 a year in expenses. The opportunity cost of capital is 12%, and the firm's tax rate is 40%.

What is the equivalent annual savings from the purchase, if Gluon uses straight-line depreciation? Assume the new machine will have no salvage value (Do not round intermediate calculations. Round your answer to 2 decimal places.)