A chemical plant uses process steam that is supplied from a remote boiler house. The steam pipe is uninsulated and has an exposed length of 250 meters. It is currently estimated that the energy losses amount to $3750 annually. It is estimated that the application of 25 mm of insulation will reduce energy losses by 25%, cost of the installation is $25 per meter. If 50 mm insulation is applied, the cost will be $35 per meter and will result in a 33% reduction in energy losses. The expected life of the insulation is 15 years with no salvage value. Compare the present worths of the 25 mm insulation, the 50 mm insulation and no insulation if the minimum rate of return is 109 and fuel costs are expected to increase by 8% annually