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A small company heats its building and spends $8,500 per year on natural gas for this purpose. Cost increases of natural gas are expected to

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A small company heats its building and spends $8,500 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 $9.350 at EOY one). Their maintenance on the gas furnace is $350 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 $392.00 at the EOY one). If the planning horizon is 13 years, what is the total annual equivalent expense for operating and maintaining the fumace? The interest rate is 15% per year. Click the icon to view the interest and annuity table for discrete compounding when i=10% 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 S thousands. (Round to fwo decimal places.)

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