Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.80 per year per foot of pipe. A 1 - inch thick insulated covering will eliminate 83% of the loss and will cost $0.55 per foot. A 2-inch thick insulated covering will eliminate 92% of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 295,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10.5%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Click here to access the TVM Factor Table Calculator Part a Your answer is incorrect. What is the present worth of each option? No insulation: $1-inch insulation: $ 2 - inch insulation: $ Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.80 per year per foot of pipe. A 1-inch thick insulated covering will eliminate 83% of the loss and will cost $0.55 per foot. A 2-inch thick insulated covering will eliminate 92 % of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 295,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10.5 %/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Click here to access the TVM Factor Table Calculator Part a * Your answer is incorrect. What is the present worth of each option? No insulation: $ 1329749 1-inch insulation: $ 2-inch insulation: $
Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.80 per year per foot of pipe. A 1 - inch thick insulated covering will eliminate 83% of the loss and will cost $0.55 per foot. A 2-inch thick insulated covering will eliminate 92% of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 295,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10.5%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Click here to access the TVM Factor Table Calculator Part a Your answer is incorrect. What is the present worth of each option? No insulation: $1-inch insulation: $ 2 - inch insulation: $ Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.80 per year per foot of pipe. A 1-inch thick insulated covering will eliminate 83% of the loss and will cost $0.55 per foot. A 2-inch thick insulated covering will eliminate 92 % of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 295,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10.5 %/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Click here to access the TVM Factor Table Calculator Part a * Your answer is incorrect. What is the present worth of each option? No insulation: $ 1329749 1-inch insulation: $ 2-inch insulation: $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is
either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost
$1.80 per year per foot of pipe. A 1 - inch thick insulated covering will eliminate 83% of the loss and will cost $0.55 per
foot. A 2-inch thick insulated covering will eliminate 92% of the loss and will cost $0.85 per foot. PCCC Physical Plant
Services estimates that there are 295,000 feet of steam pipe on campus. The PCCC Accounting Office requires a
10.5%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Click here to access
the TVM Factor Table Calculator Part a Your answer is incorrect. What is the present worth of each option? No insulation:
$1-inch insulation: $ 2 - inch insulation: $
Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch
thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.80 per year per foot of
pipe. A 1-inch thick insulated covering will eliminate 83 % of the loss and will cost $0.55 per foot. A 2-inch thick insulated covering will
eliminate 92% of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 295,000 feet of steam
pipe on campus. The PCCC Accounting Office requires a 10.5 %/year return to justify capital expenditures. The insulation has a life
expectancy of 10 years.
Click here to access the TVM Factor Table Calculator
Part a
* Your answer is incorrect.
What is the present worth of each option?
No insulation: $
1329749
1-inch insulation: $
2-inch insulation: $
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