A machine was purchased and installed in the beginning of year 2016. The estimated cost of operating a machine for 7 years is shown below. These costs are in current period dollars at the end of each year. For example, the cost in 2020 is reported in end of year 2020 dollars. An inflation rate of 3.25% was used in estimation process. What is the Present Worth of costs including purchase amount in beginning of 2016 dollars using a real MARR of 6.5% for the machine? Operating Cost Using End of Year Dollars

Machine Purchase	Operating Cost 2016	Operating Cost 2017	Operating Cost 2018	Operating Cost 20190	Operating Cost 2020	Operating Cost 2021	Operating Cost 2022
72,000	12,000	26,000	28,000	30,500	33,000	36,500	19,800