A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $110,000 to...

A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's dollars, the college estimates that it will cost $110,000 to replace old computing equipment. Due to decreasing prices on computers, it estimates that this cost will decrease each of the following years by 3%. What would the present worth of computing updates for years 1-5 be, assuming a required 16% real return on its investments?