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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 9% per year starting one year from now (i.e., the first cash flow is exist9, 156 at EOY one). Their maintenance on the gas furnace is exist360 per year, and this expense is expected to increase by 15% per year starting one year from now (i.e., the first cash flow for this expense is exist414.00 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 20% per year
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