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pls show solution, and draw cash flow diagram, thanks! The heat loss through the exterior walls of a certain poultry processing plant is estimated to
pls show solution, and draw cash flow diagram, thanks!
"The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $4000 next year. A salesperson from Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce the heat loss by 70% with the installation of $20000 worth of Superfiber now. If the cost of heat loss rises by $30 per year (uniform gradient) after the next year and the owner plans to keep the present building for 14 more years, what is the present worth of the savings? Would you recommend installing the insulation now given that the interest rate of 8.93% year?" A 332652.08 B 330369.11 119574.23 D 236324.84 E 22731.49Step by Step Solution
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