A small company heats its building and spends $8,200 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 8% per year starting one year from now (i.e., the first cash flow is $8,856 at EOY one). Their maintenance on the gas furnace is $340 per year, and this expense is expected to increase by 12% per year starting one year from now (i.e., the first cash flow for this expense is $380.80 at the EOY one). If the planning horizon is 13 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 15% per year. Click the icon to view the interest and annuity table for discrete compounding when i=8% per year. Click the icon to view the interest and annuity table for discrete compounding when i=12% per year. Click the icon to view the interest and annuity table for discrete compounding when i=15% per year. The total annual equivalent expense for operating and maintaining the furnace is $ thousands. (Round to two decimal places.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Discrete Compounding; i=12%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } & \multicolumn{2}{|c|}{ Uniform Gradient } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \end{tabular} & \begin{tabular}{c} Gradient \\ Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Gradient \\ Uniform \\ Series \\ Factor \end{tabular} \\ \hline N & \begin{tabular}{c} To Find F \\ Given P \\ FiP \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ PF \end{tabular} & \begin{tabular}{l} To Find F \\ Given A \\ Fi A \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ PIA \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ AlF \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ A/P \end{tabular} & \begin{tabular}{c} To Find P \\ Given G \\ P/G \end{tabular} & \begin{tabular}{c} To Find A \\ Given G \\ A/G \end{tabular} \\ \hline 1 & 1.1200 & 0.8929 & 1.0000 & 0.8929 & 1.0000 & 1.1200 & 0.0000 & 0.0000 \\ \hline 2 & 1.2544 & 0.7972 & 2.1200 & 1.6901 & 0.4717 & 0.5917 & 0.7972 & 0.4717 \\ \hline 3 & 1.4049 & 0.7118 & 3.3744 & 2.4018 & 0.2963 & 0.4163 & 2.2208 & 0.9246 \\ \hline 4 & 1.5735 & 0.6355 & 4.7793 & 3.0373 & 0.2092 & 0.3292 & 4.1273 & 1.3589 \\ \hline 5 & 1.7623 & 0.5674 & 6.3528 & 3.6048 & 0.1574 & 0.2774 & 6.3970 & 1.7746 \\ \hline 6 & 1.9738 & 0.5066 & 8.1152 & 4.1114 & 0.1232 & 0.2432 & 8.9302 & 2.1720 \\ \hline 7 & 2.2107 & 0.4523 & 10.0890 & 4.5638 & 0.0991 & 0.2191 & 11.6443 & 2.5515 \\ \hline 8 & 2.4760 & 0.4039 & 12.2997 & 4.9676 & 0.0813 & 0.2013 & 14.4714 & 2.9131 \\ \hline 9 & 2.7731 & 0.3606 & 14.7757 & 5.3282 & 0.0677 & 0.1877 & 17.3563 & 3.2574 \\ \hline 10 & 3.1058 & 0.3220 & 17.5487 & 5.6502 & 0.0570 & 0.1770 & 20.2541 & 3.5847 \\ \hline 11 & 3.4785 & 0.2875 & 20.6546 & 5.9377 & 0.0484 & 0.1684 & 23.1288 & 3.8953 \\ \hline 12 & 3.8960 & 0.2567 & 24.1331 & 6.1944 & 0.0414 & 0.1614 & 25.9523 & 4.1897 \\ \hline 13 & 4.3635 & 0.2292 & 28.0291 & 6.4235 & 0.0357 & 0.1557 & 28.7024 & 4.4683 \\ \hline 14 & 4.8871 & 0.2046 & 32.3926 & 6.6282 & 0.0309 & 0.1509 & 31.3624 & 4.7317 \\ \hline 15 & 5.4736 & 0.1827 & 37.2797 & 6.8109 & 0.0268 & 0.1468 & 33.9202 & 4.9803 \\ \hline 16 & 6.1304 & 0.1631 & 42.7533 & 6.9740 & 0.0234 & 0.1434 & 36.3670 & 5.2147 \\ \hline 17 & 6.8660 & 0.1456 & 48.8837 & 7.1196 & 0.0205 & 0.1405 & 38.6973 & 5.4353 \\ \hline 18 & 7.6900 & 0.1300 & 55.7497 & 7.2497 & 0.0179 & 0.1379 & 40.9080 & 5.6427 \\ \hline 19 & 8.6128 & 0.1161 & 63.4397 & 7.3658 & 0.0158 & 0.1358 & 42.9979 & 5.8375 \\ \hline 20 & 9.6463 & 0.1037 & 72.0524 & 7.4694 & 0.0139 & 0.1339 & 44.9676 & 6.0202 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Discrete Compounding; i=8%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } & \multicolumn{2}{|c|}{ Uniform Gradient } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \end{tabular} & \begin{tabular}{c} Gradient \\ Present \\ Worth \\ Factor \end{tabular} & \begin{tabular}{c} Gradient \\ Uniform \\ Series \\ Factor \end{tabular} \\ \hlineN & \begin{tabular}{c} To Find F \\ Given P \\ F/P \end{tabular} & \begin{tabular}{l} To Find P \\ Given F \\ P/F \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ F/A \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ P/A \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ A/F \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ APP \end{tabular} & \begin{tabular}{c} To Find P \\ Given G \\ P/G \end{tabular} & \begin{tabular}{c} To Find A \\ Given G \\ A/G \end{tabular} \\ \hline 1 & 1.0800 & 1.0800 & 1.0000 & 0.9259 & 1.0000 & 1.0800 & 0.0000 & 0.0000 \\ \hline 2 & 1.1664 & 0.7561 & 2.0800 & 1.7833 & 0.4808 & 0.5608 & 0.8573 & 0.4808 \\ \hline 3 & 1.2597 & 0.6575 & 3.2464 & 2.5771 & 0.3080 & 0.3880 & 2.4450 & 0.9487 \\ \hline 4 & 1.3605 & 0.5718 & 4.5081 & 3.3121 & 0.2219 & 0.3019 & 4.6501 & 1.4040 \\ \hline 5 & 1.4693 & 0.4972 & 5.8666 & 3.9927 & 0.1705 & 0.2505 & 7.3724 & 1.8465 \\ \hline 6 & 1.5869 & 0.4323 & 7.3359 & 4.6229 & 0.1363 & 0.2163 & 10.5233 & 2.2763 \\ \hline 7 & 1.7138 & 0.3759 & 8.9228 & 5.2064 & 0.1121 & 0.1921 & 14.0242 & 2.6937 \\ \hline 8 & 1.8509 & 0.3269 & 10.6366 & 5.7466 & 0.0940 & 0.1740 & 17.8061 & 3.0985 \\ \hline 9 & 1.9990 & 0.2843 & 12.4876 & 6.2469 & 0.0801 & 0.1601 & 21.8081 & 3.4910 \\ \hline 10 & 2.1589 & 0.2472 & 14.4866 & 6.7101 & 0.0690 & 0.1490 & 25.9768 & 3.8713 \\ \hline 11 & 2.3316 & 0.2149 & 16.6455 & 7.1390 & 0.0601 & 0.1401 & 30.2657 & 4.2395 \\ \hline 12 & 2.5182 & 0.1869 & 18.9771 & 7.5361 & 0.0527 & 0.1327 & 34.6339 & 4.5957 \\ \hline 13 & 2.7196 & 0.1625 & 21.4953 & 7.9038 & 0.0465 & 0.1265 & 39.0463 & 4.9402 \\ \hline 14 & 2.9372 & 0.1413 & 24.2149 & 8.2442 & 0.0413 & 0.1213 & 43.4723 & 5.2731 \\ \hline 15 & 3.1722 & 0.1229 & 27.1521 & 8.5595 & 0.0368 & 0.1168 & 47.8857 & 5.5945 \\ \hline 16 & 3.4259 & 0.1069 & 30.3243 & 8.8514 & 0.0330 & 0.1130 & 52.2640 & 5.9046 \\ \hline 17 & 3.7000 & 0.0929 & 33.7502 & 9.1216 & 0.0296 & 0.1096 & 56.5883 & 6.2037 \\ \hline 18 & 3.9960 & 0.0808 & 37.4502 & 9.3719 & 0.0267 & 0.1067 & 60.8426 & 6.4920 \\ \hline 19 & 4.3157 & 0.0703 & 41.4463 & 9.6036 & 0.0241 & 0.1041 & 65.0134 & 6.7697 \\ \hline 20 & 4.6610 & 0.0611 & 45.7620 & 9.8181 & 0.0219 & 0.1019 & 69.0898 & 7.0369 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Discrete Compounding; i=15%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } & \multicolumn{2}{|c|}{ Uniform Gradient } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \\ \end{tabular} & \begin{tabular}{c} Gradient \\ Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Gradient \\ Uniform \\ Series \\ Factor \end{tabular} \\ \hlineN & \begin{tabular}{c} To Find F \\ Given P \\ F/P \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ P/F \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ F/A \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ P/A \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ A/F \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ APP \end{tabular} & \begin{tabular}{c} To Find P \\ Given G \\ P/G \end{tabular} & \begin{tabular}{c} To Find A \\ Given G \\ A/G \end{tabular} \\ \hline 1 & 1.1500 & 0.8696 & 1.0000 & 0.8696 & 1.0000 & 1.1500 & 0.0000 & 0.0000 \\ \hline 2 & 1.3225 & 0.7561 & 2.1500 & 1.6257 & 0.4651 & 0.6151 & 0.7561 & 0.4651 \\ \hline 3 & 1.5209 & 0.6575 & 3.4725 & 2.2832 & 0.2880 & 0.4380 & 2.0712 & 0.9071 \\ \hline 4 & 1.7490 & 0.5718 & 4.9934 & 2.8550 & 0.2003 & 0.3503 & 3.7864 & 1.3263 \\ \hline 5 & 2.0114 & 0.4972 & 6.7424 & 3.3522 & 0.1483 & 0.2983 & 5.7751 & 1.7228 \\ \hline 6 & 2.3131 & 0.4323 & 8.7537 & 3.7845 & 0.1142 & 0.2642 & 7.9368 & 2.0972 \\ \hline 7 & 2.6600 & 0.3759 & 11.0668 & 4.1604 & 0.0904 & 0.2404 & 10.1924 & 2.4498 \\ \hline 8 & 3.0590 & 0.3269 & 13.7268 & 4.4873 & 0.0729 & 0.2229 & 12.4807 & 2.7813 \\ \hline 9 & 3.5179 & 0.2843 & 16.7858 & 4.7716 & 0.0596 & 0.2096 & 14.7548 & 3.0922 \\ \hline 10 & 4.0456 & 0.2472 & 20.3037 & 5.0188 & 0.0493 & 0.1993 & 16.9795 & 3.3832 \\ \hline 11 & 4.6524 & 0.2149 & 24.3493 & 5.2337 & 0.0411 & 0.1911 & 19.1289 & 3.6549 \\ \hline 12 & 5.3503 & 0.1869 & 29.0017 & 5.4206 & 0.0345 & 0.1845 & 21.1849 & 3.9082 \\ \hline 13 & 6.1528 & 0.1625 & 34.3519 & 5.5831 & 0.0291 & 0.1791 & 23.1352 & 4.1438 \\ \hline 14 & 7.0757 & 0.1413 & 40.5047 & 5.7245 & 0.0247 & 0.1747 & 24.9725 & 4.3624 \\ \hline 15 & 8.1371 & 0.1229 & 47.5804 & 5.8474 & 0.0210 & 0.1710 & 26.6930 & 4.5650 \\ \hline 16 & 9.3576 & 0.1069 & 55.7175 & 5.9542 & 0.0179 & 0.1679 & 28.2960 & 4.7522 \\ \hline 17 & 10.7613 & 0.0929 & 65.0751 & 6.0472 & 0.0154 & 0.1654 & 29.7828 & 4.9251 \\ \hline 18 & 12.3755 & 0.0808 & 75.8364 & 6.1280 & 0.0132 & 0.1632 & 31.1565 & 5.0843 \\ \hline 19 & 14.2318 & 0.0703 & 88.2118 & 6.1982 & 0.0113 & 0.1613 & 32.4213 & 5.2307 \\ \hline 20 & 16. 3665 & 0.0611 & 1024436 & 6.2593 & 0.0098 & 0.1598 & 33.5822 & 5.3651 \\ \hline \end{tabular}