Question: An electronics manufacturer has just purchased a component placement machine that has a useful life of 10 years. The manufacturing engineer estimates that maintenance costs for the machine during the first year will be $10,000. As the machine ages, maintenance costs are expected to increase at a rate of $1,000 per year over the remaining life. Assume that the maintenance costs occur at the end of each year. The firm wants to set up a maintenance account that earns 10% annual interest. All future maintenance expenses will be paid out of this account. How much does the firm have to deposit in the account now?