Savod Compute the future value of a $160 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. r=8%, t= 10 years b. = 8%, t=20 years c. r=4%; 1= 10 years d. r=4%, t= 20 years Future Value a. b. C. d. A new furnace for your small factory will cost $30,000 and a year to install, will require ongoing maintenance expenditures of $1,800 year. But it is far more fuel-efficient than your old furnace and will reduce your consumption of heating oil by 2,700 gallons per year. Heating oil this year will cost $3 a gallon; the price per gallon is expected to increase by $0.50 a year for the next 3 years and then stabilize for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and will have no salvage value. The discount rate is 6%. a. What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to nearest whole dollar.) b. What is the IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. What is the payback period? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) d. What is the equivalent annual cost of the furnace? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. What is the equivalent annual savings derived from the furnace? (Do not round intermediate calculations. Round your answert decimal places.) f. Compare the PV of the difference between the equivalent annual cost and savings to your answer to part (a). Are the two measur the same or is one larger? b. 1% C. NPV IRR Cumulative cash flows are positive in Equivalent annual cost Equivalent annual savings Are the two measures the same or is one larger? d. e. f