A certain medical device will result in an estimated $15,000 reduction in hospital labor

expenses during its first year of operation. Labor expenses (and thus savings) are

projected to increase at a rate of 7% per year after the first year. Additional operating

expenses for the device (maintenance, electric power, etc.) are $3,500 annually, and they

increase by $250 per year thereafter (i.e., $3,750 in year two and so on). It is anticipated

that the device will last for 10 years and will have no market value at that time. If the

MARR is 10% per year, how much can the hospital afford to pay for this device? You

may use an Excel spreadsheet in your solution.