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

Two insulation thickness alternatives have been proposed for a process steam line subject I to severe weather conditions. One alternative must be: selected. Estimated savings in heat loss and installation cost are given below.

Which thickness would you recommend for a MARR = 15% per year and negligible market (salvage) values? The study period is 12 years.

Thickness Installed Cost Annual Savings Life 2 cm 5 cm $20,000 $40,000 $5,000 4 years $7,500 6 years

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