$6-38.$ Two insulation thickness alternatives have

been proposed for a process steam line subject

to severe weather conditions. One alternative must be

siected. Estimated savings in h$$at loss and installation

ost are given below.

Which thickness would you recommend for a MARR $=$

$15\%$ per year and negligible market $($salvage$)$ values?

The study period is $12$ years. $(6\mathrm{.}5)$

$6-39.$ Refer to Problem $6-38.$ Which thickness

would you recommend if the study period was

four years? Use the imputed market value technique to

estimate the market value of the $5cm$ alternative after

four years, $(6\mathrm{.}5)$