ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
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![Two insulation thickness alternatives have been
proposed for a process steam line subject to severe
weather conditions. One alternative must be selected.
Estimated installation cost and annual savings in heat
loss are given below. \table[[\table[[Insulation], [
Thickness]], Installed Cost, \table[[Annual Savings in], [
Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per
year,4 years], [3cm, $35,000, $9,000 per year, 6 years]]
The MARR = 10% per year. The study period is 12
years. Draw the cash flow diagram for each alternative
over the entire study period.
Two insulation thickness alternatives have been proposed for a process steam line subject to
severe weather conditions. One alternative must be selected. Estimated installation cost and
annual savings in heat loss are given below.
Insulation
Thickness
2cm
Installed Cost
$20,000
$35,000
Annual Savings in
Heat Loss
$6,900 per year
$9,000 per year
Life of Insulation
4 years
6 years
3cm
=
The MARR 10% per year. The study period is 12 years. Draw the cash flow diagram for each
alternative over the entire study period.](https://content.bartleby.com/qna-images/question/df2cab2a-4db8-4cbd-b124-879b961558b7/b550662c-9e33-4cc5-b325-f987dc423e6a/di7dts8.jpeg)
Transcribed Image Text:Two insulation thickness alternatives have been
proposed for a process steam line subject to severe
weather conditions. One alternative must be selected.
Estimated installation cost and annual savings in heat
loss are given below. \table[[\table[[Insulation], [
Thickness]], Installed Cost, \table[[Annual Savings in], [
Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per
year,4 years], [3cm, $35,000, $9,000 per year, 6 years]]
The MARR = 10% per year. The study period is 12
years. Draw the cash flow diagram for each alternative
over the entire study period.
Two insulation thickness alternatives have been proposed for a process steam line subject to
severe weather conditions. One alternative must be selected. Estimated installation cost and
annual savings in heat loss are given below.
Insulation
Thickness
2cm
Installed Cost
$20,000
$35,000
Annual Savings in
Heat Loss
$6,900 per year
$9,000 per year
Life of Insulation
4 years
6 years
3cm
=
The MARR 10% per year. The study period is 12 years. Draw the cash flow diagram for each
alternative over the entire study period.
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