A small company heats its building and spends $8,400 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 $9,072 at EOY one). Their maintenance on the gas furnace is $345per 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 $386.4 at the EOY one). If the planning horizon is 14 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 15% per year.

discrete compounding when iequals=8% per year.

discrete compounding when iequals=12

discrete compounding when iequals=15% per year.