A small company heats its building and will spend $8,580 in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting year 2. Their maintenance on the gas furnace is going to be $391.00 in the first year and this expense is expected to increase by 15% per year starting year 2. 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.

A small company heats its building and will spend $8,580 in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting year 2. Their maintenance on the gas furnace is going to be $391.00 in the first year and this expense is expected to increase by 15% per year starting year 2. 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. (a) The total present worth of operating and maintaining the furnace is $(Round to nearest dollar) (b) The total annual equivalent expense for operating and maintaining the furnace is $(Round to nearest dollar)