Suppose a firm has to choose between two machines, A and B. The two machines do exactly the same job and have the same capacity. Machine A is a premium model. It costs $175 thousand and will last 4 years. It costs $57 thousand per year to run. Machine B is a basic model, costing only $114, but it will last only 3 years and costs $65 per year to run. The opportunity cost of capital is 7.1% per year. The annual operating cost of the machine that the firm should adopt is $ [Hints/Example] thousand a year.