The Transocean Inc. plans to make a five-year period payment to offset its debt. The payments begin with a $2,000 payment (inconstant dollars) at the end of the first year, and then increase at the rate of 3% per year. Assume that the average general inflation rate is 4%, and the market interest rate is 6% during this five-year period.

What is the net present worth of the payment series ?

Note: the payments described above are in constant dollars.