. As part of the refining process, a certain heat exchanger must be replaced every year. The replacement and downtime cost in the first year is $150,000. This cost is expected to increase at a rate of 12% per year for 7 years, at which time this particular heat exchanger will no longer be needed. If the company's cost of capital is 10% per year, how much can it afford to spend for a higher quality heat exchanger so that these annual replacement costs could be eliminated