Peter is a salesman for Kroner industries which specializes in making of natural gas furnaces. Peter has told you that your plants furnace needs to be replaced and he offers the following choices. All furnaces have a useful life of 10 years. Choice L (Low efficiency furnace) Initial cost is $28,000 including complete installation. Heating cost is expected to be $7,450 and increasing at 2.5% every year. Choice M (Medium efficiency furnace) Initial cost is $35,000 including complete installation. Heating cost is expected to be $6,100 and increasing at 2.5% every year. Choice H (High efficiency furnace) Initial cost is $45,000 including complete installation. Heating cost is expected to be $5,000 and increasing at 2.5% every year.