Mackelaw Company purchased a plastic molding machine three years ago for $650,000. The market value of the molding machine decreases 15% per year since it was purchased three years ago and until the expected life of the equipment for a maximum of 10 more years from now. The maintenance & operating costs are expected to be $45,000 per year for the first four years (years 1-4), and they will increase 25% annually until the end of the life of the equipment If the equipment is going to be retained for a number of years that are equal to its economic service life (ESL), what would be the Annual Cost (AW) of the equipment for the company? Use an interest rate of 14% per year