Please solve clearly with steps.

Q1: (5 points) The annual fuel costs required to operate a small solid-waste treatment plant are projected to be $2.5 million without considering any future inflation. The best estimates indicate that the annual inflation-free interest rate (i) will be 7% and the general inflation rate (f) will be 6%. If the plant has a remaining useful life of six years, what is the present equivalent of its fuel costs? Use actual-dollar analysis