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A small company heats its building using a gas furnace. If expects to spend $8,720 on natural gas this first yoar. Tho cost of tho
A small company heats its building using a gas furnace. If expects to spend $8,720 on natural gas this first yoar. Tho cost of tho natural gas is expecled to increase by 9% por yoar every subsequent year. There is also the maintenance cost on the gas fumace which is expected to be $451.00 in the first year and to increaso by 15% per year evory subsequent year. The planning horrzon is 15 years and the company uses an annual interest ralo of 20% for economic analysis of its investments. (a) The projected annual cost of natural gas in year 15 is \& (Round to nearest dollar) (b) The projected annual maintenance cost of the furnace in year 15 is \$ (Round to nearest dollar) (c) The total present worth of operating and maintaining the furnace over the 15 years is: (Round to nearest dollar)
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