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A small company heats its building and spends exist8, 400 per year on natural gas for this purpose. Cost increases of natural gas are expected
A small company heats its building and spends exist8, 400 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 (ie., the first cash flow is exist9.240 at EOY one). Their maintenance on the gas furnace is exist355 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 exist397.60 at the EOY one). If the planning horizon is 14 years, what is the total annual equivalent expense for operating and maintaining the ? The interest rate is 18% 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 = 18% per year. The total annual equivalent expense for operating and maintaining the furnace is exist thousands.(Round to two decimal places.)
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