Question: Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. The estimated installed

 Two insulation thickness alternatives have been proposed for a process steam

Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. The estimated installed cost and annual energy savings in heat loss are given below. Which thickness would you recommend for an after-tax MARR of 10% per year and negligible salvage value? Straight line depreciation will be used. The study period is 12 years, and the effective income tax rate is 25%. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The after-tax annual worth for 2cm. insulation thickness is $ (Round to the nearest dollar) The after-tax annual worth for 5cm insulation thickness is 3 (Round to the nearest dollar.) Based on the AW values, insulation should be chosen

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