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 below. Thickness Installed cost Annual savings life 2cm $20,000 $5,000 4 years 5cm $40,000 $7,500 6 years Which thickness would you recommend for a MARR=15% per year and negligible market (salvage) values? The study period is 12 years.

10% per year. 19. 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 below. ckness Installed cost Annual saving life 2cm $20,000 $5,000 4 years $7,500 6 years 5cm $40,000 Which thickness would you recommend for a MARR 15% per year and negligible market (salvage) values? The study period is P years