A small company heats its building and spends $8,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 9% per year starting one year from now (e, the first cash flow is $9,592 at EOY one). Their maintenance on the gas furnace is $355 per year, and this expense is expected to increase by 12% per year starting one year from now (e, the first cash flow for this expense is $397.60 at the EOY one). If the planning horizon is 14 years, what is the total annual equivalent expense for operating and maintaining the fumace? The interest rate is 15% per year. Click the icon to view the interest and annuity table for discrete compounding when -0% per year Click the icon to view the interest and annuity table for discrete compounding when i 12% per year. Click the icon to view the interest and annuty table for discrete compounding when -15% per year The total annual equivalent expense for operating and maintaining the fumace is $thousands (Round to two decimal places)

ENGR.ECONOMIC ANALYSIS
14th Edition
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Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A small company heats its building and spends $8,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 9% per year starting
one year from now (i.e., the first cash flow is $9,592 at EOY one). Their maintenance on the gas furnace is $355 per year, and this expense is expected to increase by
12% per year starting one year from now (i.e. the first cash flow for this expense is $397.60 at the EOY one). If the planning horizon is 14 years, what is the total
annual equivalent expense for operating and maintaining the furnace? The interest rate is 15% per year.
Click the icon to view the interest and annuity table for discrete compounding when /- 0% per year.
Click the icon to view the interest and annuity table for discrete compounding when /-12% per year.
Click the icon to view the interest and annuity table for discrete compounding when / 15% per year.
CORD
The total annual equivalent expense for operating and maintaining the fumace is $thousands (Round to two decimal places.)
Transcribed Image Text:A small company heats its building and spends $8,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 9% per year starting one year from now (i.e., the first cash flow is $9,592 at EOY one). Their maintenance on the gas furnace is $355 per year, and this expense is expected to increase by 12% per year starting one year from now (i.e. the first cash flow for this expense is $397.60 at the EOY one). If the planning horizon is 14 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 15% per year. Click the icon to view the interest and annuity table for discrete compounding when /- 0% per year. Click the icon to view the interest and annuity table for discrete compounding when /-12% per year. Click the icon to view the interest and annuity table for discrete compounding when / 15% per year. CORD The total annual equivalent expense for operating and maintaining the fumace is $thousands (Round to two decimal places.)
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