Ford Motor Company was able to reduce by 73% the cost required for installing data acquisition instrumentation on test vehicles by using MTS-developed spinning wheel force transducers. The cost this year (i.e., end of year 1) is expected to be $3400. If the costs are expected to increase by $250 each year for the next 4 years, what is the equivalent annual worth of the costs (years 1- 5) at an interest rate of 7% per year? The equivalent annual worth is $