You are the finance manager for Olympia Industries. The company plans to purchase $$1,000,000$ in new assembly line machinery in $5$ year.

$1.$ How much must be set aside now at $6\%$ interest compounded semiannually to accumulate the $$1,000,000$ in $5$ years?

$2.$ If the inflation rate on this type of equipment is $4\%$ per year, what will be the cost of the equipment in $5$ years, adjusted for inflation?

$3.$ Use the inflation$-$adjusted cost of the equipment to calculate how much must be set aside now.

$4.$ Use the present value formula to calculate how much would be required now if you found a bank that offered $6\%$ interest compounded daily.