1. An engineering firm realizes that a new machine will be needed in five years. The new machine is expected to cost $2,589,000, at current cost, however, the machine is very popular, and supply has been limited, therefore, the price escalates by 5% each year. The firm expects interest rates to be 2.5% for the next five years with no variation anticipated. The Chief Engineer would like to know how much money the firm would have to accumulate at the end of each year over the next five years to be able to pay cash for the machine