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 higher labor requirements, exhibits a higher operating cost. The cash flows relevant to this problem have been estimated as follows:
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Check the values given for the discounted-cash-flow rate of return and net present worth. If the company requires a minimum rate of return of 10 percent, which system should be chosen?