PROBLEM SET NO. 2 ES 321 2. The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $3,000 next year. A salesman from Superfiber insulation, has told you, the plant manager, that he can reduce the heat loss by 80% with the installation of $15,000 worth of Superfiber now. If the cost of heat loss rises by $200 per year (gradient) after the next year and the owner plans to keep the building for 15 more years, what would you recommend if the interest rate is 12% per year? A = 3 ,000
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