Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions.
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Question:
Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated savings in heat loss and installation cost are given in Table 1. Which thickness would you recommend for a MARR = 15% per year and negligible market (salvage) values? The study period is 12 years. show the calculation.
Table 1
Thickness | Install cost | Annual savings | Useful life |
2cm | $20,000 | $5,000 | 4 years |
5cm | $40,000 | $7,500 | 6 years |
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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