13.2 Ace Manufacturing has an uninsulated condensate return holding pressurized condensate at 20 psig saturated. The tank is 25 feet in diameter and 4 feet long. Management is considering add. ing 2 inches of aluminum-jacketed fiberglass at an installed cost of $.60/ft?. The steam is generated by a boiler which is 78% efficient and consumes No. 2 fuel oil at $7.00/10° Btu.
Energy costs will remain constant over the economic life of the insulation of 5 years. Assume that the tank is on a stand, and that the facility MARR = 15%. Ambient temperature is 70°F. Use Rs = .42 for the uninsulated tank. The tank is utilized 8000 hours/year. Calculate the present worth of the proposed investment.
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