A geotechnical engineering firm has been awarded a job to design the foundation of an office building. The project is postponed and will not start for four more years. The firm needs to estimate the present worth of the costs of the project. At the year four, the cost will be $175,000 decreasing by $50,000 per year for the next three years. If the interest rate is 4%, what is the present worth of the projected cost of the project?

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