n a cold storage plant, it is desired to determine whether to use insulation of two inches or three inches thick in insulating the walls of the cold storage warehouse.Heat absorbed through the walls without insulation would cost Php 96 per year per square meter. Two-inch insulation will cost Php 30.40 per square meter and will cut out 89% of the loss. Three-inch insulation will cut out 92% of the loss and will cost Php 65 per square meter. Using a life of 15 years for the insulation with no salvage value and a minimum attractive rate of return of 8%, what thickness of insulation should be used?
n a cold storage plant, it is desired to determine whether to use insulation of two inches or three inches thick in insulating the walls of the cold storage warehouse.Heat absorbed through the walls without insulation would cost Php 96 per year per square meter. Two-inch insulation will cost Php 30.40 per square meter and will cut out 89% of the loss. Three-inch insulation will cut out 92% of the loss and will cost Php 65 per square meter. Using a life of 15 years for the insulation with no salvage value and a minimum attractive rate of return of 8%, what thickness of insulation should be used?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a cold storage plant, it is desired to determine whether to use insulation of two inches or three inches thick in insulating the walls of the cold storage warehouse.Heat absorbed through the walls without insulation would cost Php 96 per year per square meter. Two-inch insulation will cost Php 30.40 per square meter and will cut out 89% of the loss. Three-inch insulation will cut out 92% of the loss and will cost Php 65 per square meter. Using a life of 15 years for the insulation with no salvage value and a minimum attractive
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