Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather...

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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. Insulation Thickness 2cm 3cm Installed Cost $20,000 Annual Savings in Heat Loss $6,900 per year Life of Insulation 4 years $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 3cm Installed Cost $20,000 Annual Savings in Heat Loss $6,900 per year Life of Insulation 4 years $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.