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A small company heats its building and spends $7,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to

A small company heats its building and spends $7,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8580 at EOY one). Their maintenance on the gas furnace is $350 per year, and this expense is expected to increase by 15% per year starting one year from now (i.e., the first cash flow for this expense is $402.50 at the EOY one). If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year. The total annual equivalent expense for operating and maintaining the furnace is $ ? thousands. (Round to two decimal places.)

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