(Solution) - At the Motorola plant in Mesa Arizona it is desired -(2025 Original AI-Free Solution)

Paper Details

At the Motorola plant in Mesa, Arizona, it is desired to determine whether one-inch-thick insulation or two-inch-thick insulation should be used to reduce heat loss from a long section of steam pipe. The heat loss from this pipe without any insulation would cost $2.00 per linear foot per year. The one-inch insulation will eliminate 88% of the heat loss and will cost $0.60 per foot. Two-inch insulation will eliminate 92% of the heat loss and will cost $1.10 per foot. The steam pipe is 1,000 feet in length and will last for 10 years. MARR = 6% per year. Which insulation thickness should be recommended?