A company that manufactures clear PVC pipe is investigating the production options of batch and continuous processes.
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A company that manufactures clear PVC pipe is investigating the production options of batch and continuous processes. Estimated cash flows are as follows:
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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.
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