Question: To be able to begin a highway project, state regulations require that the money must be set aside at the beginning of the project to

To be able to begin a highway project, state regulations require that the money must be set aside at the beginning of the project to cover the entire project cost. The project is a 4-year project, the cost of the project will be $22 million in year 1, and costs are expected to increase by 8% each year due to anticipated design modifications. How much should the state put aside to build this highway, assuming money is invested in an account that earns 2% per year?

Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. Please enter your answers in millions of dollars. The tolerance is 0.005 million.

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