Nippon Steel's expenses for heating and cooling a large manufacturing facility areexpected to increase according to an arithmetic gradient beginning in year 2. If the cost is$550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated toincrease by $43,000 each year through year 12, what is the equivalent annual worth inyears 1 to 12 of these energy costs at an interest rate of 8% per year?

Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $54,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 13% per year? The equivalent annual worth is determined to be $ 863,996 + 2% Explanation: A = 550,000 A, 13%, 12 ) + 550,000 + 54,000 ( 4, 13%, 12) A = 550,000 x (0.169) + 550,000 + 54,000 x (4.094) A = $863,996