It is desired to determine the most economical thickness of insulation for a large cold-storage room. Insulation
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Insulation, in. Heat loss, Btu per hr
3 ........................................... 4,400
4 ........................................... 3,400
5 ........................................... 2,800
6 ........................................... 2,400
7 ........................................... 2,000
8 ........................................... 1,800
The cost of heat removal (loss) is estimated at $0.04 per 1,000 Btu. The MARR is 20% per year. Assuming continuous operation throughout the year, develop a spreadsheet to analyze the sensitivity of the optimal thickness to errors in estimating the cost of heat removal, i Use the AW technique.
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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