(a) The projected annual cost of natural gas in year 14 is $ (Round to nearest dollar) (b) The projected annual maintenance cost of the furnace in year 14 is $. (Round to nearest dollar) (c) The total present worth of operating and maintaining the furnace over the 14 years is $ (Round to nearest dollar)

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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Please answer all parts if possible if not at least the first two parts 

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 $851.00 in the first year and to increase by 15% per
year every subsequent year. The planning horizon is 14 years and the company uses an annual interest rate of 18%
for economic analysis of its investments.
(a) The projected annual cost of natural gas in year 14 is $
(Round to nearest dollar)
(b) The projected annual maintenance cost of the furnace in year 14 is $. (Round to nearest dollar)
(c) The total present worth of operating and maintaining the furnace over the 14 years is $ (Round to
nearest dollar)
Transcribed Image Text: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 $851.00 in the first year and to increase by 15% per year every subsequent year. The planning horizon is 14 years and the company uses an annual interest rate of 18% for economic analysis of its investments. (a) The projected annual cost of natural gas in year 14 is $ (Round to nearest dollar) (b) The projected annual maintenance cost of the furnace in year 14 is $. (Round to nearest dollar) (c) The total present worth of operating and maintaining the furnace over the 14 years is $ (Round to nearest dollar)
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