Insulation amortized

The function to be minimized, the objective function, is the yearly total cost of the piping system—the sum of the amortized capital cost of the pipe and insulation plus the operating costs... 

The amortized insulation cost, capital cost of the insulation, Zj, and the amortization factor, ip ... 

An investigation by Fraunhofer Institute Karlsruhe in 1998 has shown that 2.0 GJ/cbm of foam energy are needed and 60 kg CO2 /cbm are emitted when producing the foam, but the annual savings when used for insulation amount to 3.7 GJ/cbm energy and 243 kg C02/cbm. Thus, the amortization of the environmental loads occurs within less than one year [2]. 

The optimum or economic thickness of insulation is determined by optimizing the cost of energy and the costs of insulation. A discounted-cash flow analysis of insulation economics must be conducted using appropriate costs for investment and amortization periods. Insulation for energy conservation is an excellent investment and when optimized, a balance between investment and savings will be obtained. 

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