Question
A small company heats its building and spends $8 comma 5008,500 per year on natural gas for this purpose. Cost increases of natural gas are
A small company heats its building and spends $8 comma 5008,500 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 1010% per year starting one year from now (i.e., the first cash flow is $9 comma 3509,350 at EOY one). Their maintenance on the gas furnace is $355355 per year, and this expense is expected to increase by 1212% per year starting one year from now (i.e., the first cash flow for this expense is $397.60397.60 at the EOY one). If the planning horizon is 1414 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 1818% per year.
Discrete Compounding; 10% Uniform Series Single Payment Uniform Gradient Gradient Gradient Capital Compound Amount Factor To Find F Given A Present Compound Amount Uniform Series Sinking Fund Recovery Present Worth Factor To Find P Given A Present 0 Factor To Find A Given F Factor Worth Factor Factor To FindP To FindP Given F To Find A Given G A/G 0.0000 0.4762 0.9366 To FindF Given F To Find A Given F Given 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.0000 0.8264 2.3291 4.3781 1.1000 1.0000 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 1.1000 2 2.1000 1.3310 0.6086 4 0.4371 2.2236 2.6216 3.0045 3.3724 3.7255 4.0641 6 7 9.6842 12.7631 16.0287 1.9487 9.4872 11.4359 13.5795 15.9374 0.2660 0.2255 0.0874 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 2.3579 2.5937 2.8531 0.1736 0.1627 0.1540 22.8913 26.3963 29.9012 33.3772 36.8005 40.1520 6.4951 6.8137 21.3843 24.5227 27.9750 31.7725 0.1372 4.6988 4.9955 5.2789 3.4523 0.0985 0.0835 7.3667 7.6061 0.1357Step by Step Solution
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