Morgan Village is a voluntary, nonprofit, continuing care retirement center. Presently, it has $1,200,000 set aside for replacement and renovation. Its current accumulated depreciation is $1,800,000, and the average age of the plant is 10 years. If it can be assumed that capital assets for Morgan Village are inflating at 6% per year, what balance would Morgan Village need to have set aside today to meet their replacement needs if they will not be using any debt financing?