Two insulation thickness alternatives have been proposed for a process steam line subject I to severe weather

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 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.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...