Two hospitals report their annual projected revenue fo five years to the local newspaper for a story on the area's future economic outlook. however, hospital 1 has applied a cumulative inflation factor of five percent per year while hospital 2 has not applied any inflation factor. thus the information is not properly comparable.
Projected Revenue:
year 1 year 2 year 3 year 4 year 5
hospital 1 $20,000,000 $22,000,000 $27,000,000 $27,500,000 $30,000,000
hospital 2 $20,000,000 $21,000,000 $25,000,000 $24,000,000 $26,000,000
Revise hospital 2's projection by applying a cumulative inflation factor of five percent per year.