Please answer below homework question in short and easy steps : Let say if a businessmen consulting with a Medical Center analyzing a possible improvement upgrade to their operating rooms chilled...

Please answer below homework question in short and easy steps :

Let say if a businessmen consulting with a Medical Center analyzing a possible improvement upgrade to their operating rooms chilled water air conditioning system.

The improvement is expected to last for 5 years, and each year they expect to save $87,000 per year due to less water usage and to save $58,000 per year due to using less. To pay for this improvement, this Medical Center will withdraw money from an invesment paying 2.5 % interest compunded annually.

Please suggest what will be the maximum amount that you would recommend this Medical Center should pay for this upgrade ?