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Ksivusya [100]
3 years ago
6

A small company heats its building and spends ​$8 comma 000 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 ​$8 comma 720 at EOY​ one). Their maintenance on the gas furnace is ​$340 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 ​$380.80 at the EOY​ one). If the planning horizon is 13 ​years, what is the total annual equivalent expense for operating and maintaining the​ furnace? The interest rate is 15​% per year.

Business
1 answer:
vitfil [10]3 years ago
5 0

Answer:

Annual equivalent expense= -14514.51

Explanation:

Please see attachment

                                           

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