An engineer in charge of the design of a plant must choose either a batch or a continuous system. The batch system offers a lower initial outlay but, owing to high labor requirements, exhibits a higher operating cost. The cash flows relevant to this problem have been estimated as follows:

Check the values given for the investor's rate of return and net present worth. If the company requires a minimum rate of return of \(10 \%\), which system should be chosen?

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Investor's Year Rate of Net Present 0 1-10 Return Worth at 10% Batch system -$20,000 $5,600 Continuous system -$30,000 $7,650 25% $14,400 22 $17,000