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Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or
Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.55 per year per foot of pipe. A 1 -inch thick insulated covering will eliminate 78% of the loss and will cost $0.37 per foot. A 2 -inch thick insulated covering will eliminate 97% of the loss and will cost $0.88 per foot. PCCC Physical Plant Services estimates that there are 292,500 feet of steam pipe on campus. The PCCC Accounting Office requires a 10\%/year return to justify capital expenditures. The insulation has a life expectancy of 9 years. Determine which insulation (if any) should be purchased using a ranking future worth analysis. Click here to access the TVM Factor Table Calculator Which one of the following statements shows the correct ranking of the alternatives in terms of their initial cost? (from the lowest to highest) No insulation, 1 insulation, 2 insulation 2n insulation, No insulation, 1 insulation No insulation, 2" insulation, 1 insulation 1 insulation, 2 insulation, No insulation 1 insulation, No insulation, 2 insulation The heat loss per year per foot can be computed by multiplying the heat loss for the "No Insulation" alternative times (1 - \%reduction). The heat loss per year can be computed by multiplying the heat loss per year per foot times the total length of pipe. What is the annual cost of heat loss for the 2 insulation? $ Do all calculations to 5 decimal ploces and round final answer to nearest whole dollar. Tolerance is 5
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