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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 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.)
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.)Explanation
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The formula for calculating the annual p...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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