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  3. a small company heats its building and spends $8,5

A small company heats its building and spends $8,500 per year on natural gas for...

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A small company heats its building and spends $8,500 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 8% per year starting one year from now i.e., the first cash flow is $9,180 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 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 8% 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 annuity table for discrete compounding when i= 18% per year. The total annual equivalent expense for operating and maintaining the furnace is $64.64 thousands. (Round to two decimal places.)

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