You are about to buy a piece of equipment (machine Alpha) for a project. The initial cost is $350,000 and the annual maintenance costs is $15,000. Another company offers you a second option (Machine Beta) for which the annual maintenance cost is $20,000. What is the maximum price (the initial cost) you would be willing to pay for the second option? Both machines have the same useful life of 8 years and the difference between their performances is negligible. Assume an annual interest rate of 7%.