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 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. Thickness Installed Cost Annual Savings Life 2 cm $25,000 $4,500 4 years 5 cm. $36,000 $10, 100 6 years 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 2 cm. insulation thickness is $ . (Round to the nearest dollar.) The after-tax annual worth for 5 cm. insulation thickness is $ .(Round to the nearest dollar.) Based on the AW values insulation should be chosen

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