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A small company heats its building and will spend $8,856 in year 1 on natural gas for this purpose Cost increases of natural gas are

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A small company heats its building and will spend $8,856 in year 1 on natural gas for this purpose Cost increases of natural gas are expected to be 8% per year starting year 2. Their maintenance on the gas fumace is going to be $375.20 in the first year and this expense is expected to increase by 12% per year starting year 2. If the planning horizon is 13 years, what is the total annual equivalent expense for operating and maintaining the furace? The interest rate is 15% per year. (a) The total present worth of operating and maintaining the fumace is $(Round to nearest dolar) (b) The total annual equivalent expense for operating and maintaining the tumace is $(Round to nearest dollar) A small company heats its building and will spend $8,858 in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be 8% per year starting year 2. Their maintenance on the gas fumace is going to be $375,20 in the first year and this expense is expected to increase by 12% per year starting year 2. 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. (a) The total present worth of operating and maintaining the tumace is $. (Round to nearest dolar) (b) The total anual equivalent expense for operating and maintaining the tumace is $(Round to nearest dollar)

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