Vicky is in charge of purchasing a new piece of machinery for her construction firm. The firm has set aside a total of $30,000 to spend on the machine over its lifetime. The machine has an upfront cost of $19,000 and a lifetime of 7 years. Additionally, Vicky must plan costs for machine repair as well as operational costs (such as gas and oil). Vicky estimates that repair costs for the machine will be $250 in the first year but will increase each year by $60 relative to the previous year's cost. However, she does not know how much money the firm can afford to spend on operational costs.

1. Assuming an interest rate of 8%, how much money can Vicky's firm spend on operational costs for the machine each year?

2. Vicki finds out that the repair costs will still be $250 in the first year but that they will increase each year by 20%. Assuming all the other parameters are the same, how much can be spent on operational costs every year?

Please don't answer on excel.