Please Show Work and formulas used inExcel3. A local college is installing steam pipes on their campus and must decide what insulation to use. If no insulationis used, it has been estimated that the heat loss per foot will be $2.10. If 1-inch thick insulation is used, 70% of theheat loss will be eliminated. If 2-inch thick insulation is used, 84% of the heat loss will be eliminated. The 1-inchthick insulation costs $0.30 per foot to install, and the 2-inch thick insulation costs $0.80 per foot to install. Thecampus has 230,000 ft of steam pipe on campus, and a MARR=10%. Assume the insulation has a life of 10 years.(a) Calculate the present worth (PW) of all alternatives.(b) Calculate the future worth (FW) of all alternatives.(c) Calculate the annual worth (AW) of all alternatives.(d) Rank the alternatives by any of the above metrics. Explain your choice using one of the ranking methods(PW/FW/AW), as if you were talking to your boss, a non-engineering economist.(e) What would the company's MARR need to be for options 1 and 2 to be economically equivalent?(f) What would the school's MARR need to be for no insulation to be economically equivalent to option 1?

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Answered: Please Show Work and formulas used in…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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