Suppose a machine costs $500,000 and requires $75,000 in pre-tax annual operating costs. The machine will be fully depreciated on a straight-line basis over its useful life of 10 years, a#er which it will have zero salvage value. If the required return is 12% and the tax rate is 22%, then what is the equivalent annual cost of the machine?

A)$146,992.08

B) $135,992.08

C) $152,492.08

D) $88,492.08

E) $40,992.08