Answered: Which thickness would you recommend?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated savings in heat loss and installation cost are given below. Which thickness would you recommend for a MARR=12%
per year and negligible market (salvage) values? The study period is 4 years. Use the imputed market value technique to estimate the market value of the 5 cm alternative after four years.

Thickness	Installed Cost	Annual Savings	Life
2 cm	$23,000	$4,900	4 years
5 cm	$40,000	$7,500	6 years

The AW of 2 cm insulation is $ nothing.

The AW of 5 cm insulation is $nothing.

Which thickness would you recommend? Choose the correct answer below.

5 cm

2 cm

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions