A small company heats its building using a gas furnace. It expects to spend $9,020 on natural gas this first year. The cost of the natural gas is expected to increase by 10% per year every subsequent year. There is also the maintenance. cost on the gas furnace which is expected to be $920.00 in the first year and to increase by 15% per year every subsequent year. The planning horizon is 15 years and the company uses an annual interest rate of 20% for economic analysis of its investments. (a) The projected annual cost of natural gas in year 15 is $ 34,253 (Round to nearest dollar) (b) The projected annual maintenance cost of the furnace in year 15 is $ 6510 (Round to nearest dollar) (c) The total present worth of operating and maintaining the furnace over the 15 years is $(Round to nearest dollar)

A small company heats its building using a gas furnace. It expects to spend $9,020 on natural gas this first year. The cost of the natural gas is expected to increase by 10% per year every subsequent year. There is also the maintenance. cost on the gas furnace which is expected to be $920.00 in the first year and to increase by 15% per year every subsequent year. The planning horizon is 15 years and the company uses an annual interest rate of 20% for economic analysis of its investments. (a) The projected annual cost of natural gas in year 15 is $ 34,253 (Round to nearest dollar) (b) The projected annual maintenance cost of the furnace in year 15 is $ 6510 (Round to nearest dollar) (c) The total present worth of operating and maintaining the furnace over the 15 years is $(Round to nearest dollar)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Q: factors that went into the establishment of the website

A: Basically internet marketing refers to the process of buying or selling goods or services through…

Q: NIKEiD allows customers to design their shoes and sports apparel. This example mostly highlights a…

A: Disclaimer: Since you have asked multiple question, we will solve the first question for you. If you…

Q: SCM requires partners. not only among departments within the organization but also with external

A: Effective supply chain management (SCM) is essential for firms to remain competitive and satisfy…

Q: SOLVE STEP BY STEP IN DIGITAL FORMAT Precedents A B C C A, E, F A, E, F D H, I, G Activity A BCDEFGH…

A: Find the given details below:Note that, there are discrepancies between precedents and later acts,…

Q: competitive advantage your friend could bring to his business, taking into consideration there are…

A: Competitive advantage are the factors which enables an organization to manufacture the product or…

Q: Use of Mobile application by companies for improving operations of employees,facilities and relevent…

A: Supply chain management is the management of the transportation of goods and services, and it…

Q: urgent：Hurry please 25. The "R" in SMART goals stands for... 1) Relevant 2) Reliable 3) Realistic…

A: There are various kinds of goals that are formulated by the managers. These goals are further…

Q: Background of Airbnb company - provide a brief summary of the new/improved E-Business initiative/the…

A: Leading internet marketplace Airbnb links visitors with uncommon lodging all around the world. The…

Q: Duringl lockdown which business model could be helpful for grocery consumers,? B2b,B2c,C2B,C2c

A: The plan prepared by the organization for the successful operation of their business is known as a…

Q: involved in building a website? In your own words, describe each stage and why you believe it to be…

A: Good website design and development efforts are crucial for the organization that wants to create a…

Q: Option 2: Analysis of an E-Business Transformation Objective:Analyze a NIKE business Which…

A: E-Commerce Transformation The term "objective" refers to a company's strategic goal of transitioning…

Q: expand just a little bit the vision

A: Vision statement is a clear cut statement which gives an unambiguous account of the organization's…

Q: Discuss the role of technology with reference to shipment of chilled frozen food or sea food?

A: The use of technology in shipment is basically directed towards achieving higher efficiency with…

Q: Journal

A: Watch Videos on Personal Branding:Look for videos on platforms like YouTube or educational websites…

Q: Please this is a marketing presentation. Help me create this part. My company is Explorify Travel…

A: Marketing is the functional area of management that deals with the selling and promotion of products…

Q: Which of the following is NOT a requirement for a successful product placement campaign? A.…

A: Product placement - It is a marketing strategy in which references to certain products are tied up…

Q: Why is the Internet of Things (loT) called "The future of the Internet"? Explain In Detail...

A: Internet of Things (IoT) The phrase "Internet of Things" refers to a network of physical items, or…

Question

This is my 5th time uploading this, i just need part C.

A small company heats its building using a gas furnace. It expects to spend $9,020 on natural gas this first year. The
cost of the natural gas is expected to increase by 10% per year every subsequent year. There is also the maintenance
cost on the gas furnace which is expected to be $920.00 in the first year and to increase by 15% per year every
subsequent year. The planning horizon is 15 years and the company uses an annual interest rate of 20% for economic
analysis of its investments.
(a) The projected annual cost of natural gas in year 15 is $ 34,253 (Round to nearest dollar)
(b) The projected annual maintenance cost of the furnace in year 15 is $ 6510 (Round to nearest dollar)
(c) The total present worth of operating and maintaining the furnace over the 15 years is $ (Round to
nearest dollar)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: State the given information

VIEW

Step 2: (a, b & c) Find the projected cost and the total present worth

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

What are some example types of services that may be available from a 4PL provider?
Why is APA format/style important?
Some content creators have established their own networks. Give an overview of Google's network. What drives content creators to establish these networks?
Which of the following is an example of an indirect network effect that exists on Facebook’s platform? a. More users will want to join Facebook if their network is already on Facebook. b. More advertisers will want to join Facebook because their competitors are on Facebook. c. More users will want to join Facebook because more advertisers are on Facebook. d. More advertisers will want to join Facebook because more users are on Facebook.
You are a representative for a cell phone company and it is your job to promote different cell phone plans. o Plan A costs a basic fee of $29.95 per month and 10 cents per text message o Plan B costs a basic fee of $90.20 per month and has unlimited text messages o Plan C costs a basic fee of $49.95 per month and 5 cents per text message o All plans offer unlimited calling: o Calling on nights and weekends are free o Long distance calls are included Your boss asks you to visually display three plans and compare them so you can point out the advantages of each plan to your customers. A customer wants to know how to decide which plan will save her the most money. Determine which plan has the lowest cost given the number of text messages a customer is likely to send.
Publicity: Amelia Society Gala Invitaion. You are to identify the five P's product, promotion, price, place, and public relations of event marketing and produce samples of two publicity pieces. This could be an event invitation, an event flyer, a promotional piece to get attendees t your event, etc. Please upload each piece of this assignment as a separate documents.
1 - An application software that can run on mobile phones is called ______. Rooting Apps Bids HTML
Although it was previously thought of as a site that could be used to network for jobs, ______ is now frequently used by companies in their marketing strategy, and by salespeople to identify and qualify leads.