Nippon Steel’s expenses for heating and cooling a large manufacturing facility areexpected to increase according to an arithmetic gradient beginning…
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Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $42,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 9% per year?
The equivalent annual worth is determined to be $
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