An office park is considering investing in upgrades to make its buildings more energy efficient. These upgrades would re

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An office park is considering investing in upgrades to make itsbuildings more energy efficient. These upgrades would require aninvestment of $75,000 in year 0. In the1st year, the upgrades would provide an estimatedsavings of $31,000 in year-0 dollars. Due to rising energycosts, the savings are projected to increase by 6% per year.The company has a required 10% real return on its investments.What would be the present worth of the office park's upgradesassuming a 6-year planning horizon?