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Natalka [10]
3 years ago
5

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

rnative must be selected. Estimated savings in heat loss and installation cost are given below. Which thickness would you recommend for a MARRequals12​% per year and negligible market​ (salvage) values? The study period is 4 years. Use the imputed market value technique to estimate the market value of the 5 cm alternative after four years.
Business
1 answer:
oksano4ka [1.4K]3 years ago
6 0

Answer:

= - $3068 per year

Explanation:

The AW of 5 cm insulation is

AW 5 cm (15%) = -40000(A/P, 15%, 6) +7500

                               =-40000(0.2642) +7500

                               = - $3068 per year

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