Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 8

A company that manufactures clear PVC pipe is investigating the production options of batch and continuous processes. Estimated cash flows are as follows: The chief operating officer (COO) has asked you to determine if the batch option would ever have a lower annual worth than the continuous flow system, using interest rates over a range of 5% to 15% for the batch option but only 15% for the continuous flow system. (Note: The continuous flow process was previously determined to have its lowest cost over a 5-year life cycle; the batch process can be used from 3 to 10 years.)