(Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $415,000, would last for 8 years, and would have no salvage value. The machine would reduce labor and other costs by $107,000 per year. The company requires a minimum pretax return of 9% on all investment projects.

The present value of the annual cost savings of $107,000 is closest to: