What is the total annual equivalent expense for operating

Reference no: EM133231880

Assignment:

A small company heats its building and will spend ?$9,350 in year 1 on natural gas for this purpose. Cost increases of natural gas are expected to be 10?% per year starting year 2. Their maintenance on the gas furnace is going to be ?$397.60 in the first year and this expense is expected to increase by 12?% per year starting year 2. 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.

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Part 1

(a) The total present worth of operating and maintaining the furnace is $enter your response here. ? (Round to nearest? dollar)

?(b) The total annual equivalent expense for operating and maintaining the furnace is $enter your response here. ? (Round to nearest? dollar)

Reference no: EM133231880

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