Question

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 $1.90 per year per foot of pipe. A 1-inch thick insulated covering will eliminate 84% of the loss and will cost $0.35 per foot. A 2-inch thick insulated covering will eliminate 92% of the loss and will cost $0.80 per foot. PCCC Physical Plant Services estimates that there are 280,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10.0%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Click here to access the TVM Factor Table Calculator Partially correct answer. Your answer is partially correct. Try again. What is the present worth of each option? No insulation: $Entry field with incorrect answer 1-inch insulation: $Entry field with correct answer 2-inch insulation: $Entry field with incorrect answer Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±20.

Answer 1