Find values for the discounted cash flow rate of return

Reference no: EM131780011

Question: 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, because of higher labor requirements, exhibits a higher operating cost. The cash flows relevant to this decision have been estimated as follows:

	Year 0	Years 1-10 (after taxes)	Discounted cash flow rate of return	Net present worth at 10%
Batch system	-$20,000	$5,600/year	25%	$14,400
Continuous system	-$30,000	$7650/year	22%	$17,000

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?

Reference no: EM131780011

Questions Cloud

What evidence supports evolution : What evidence supports evolution. Please explain and provide sources to back up your information.

What is the unit cost of each model transferred : What is the unit cost of each model transferred to finished goods in August

How and why statistical data should be used : Write a 1,050- to 1,400- word paper discussing how and why statistical data should be used by criminal justice leadership.

Describe the nature of the change and the year of change : Describe the nature of the change and the year of change. Identify the changes in accounting principles reported by PepsiCo during the 3 years covered.

Find values for the discounted cash flow rate of return : 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.

Genetically isolated into two distinct populations : Once a population has been genetically isolated into two distinct populations, what must occur next in order for speciation to occur? List three ways

What are the benefits and costs of sarbanes-oxley : What are the benefits and costs of Sarbanes-Oxley? Should Sarbanes-Oxley be reformed? What provisions would you include in a revised Sarbanes-Oxley

Prepare the appropriate journal entry for each of given item : Prepare the appropriate journal entry for each of the items above. You can assume that all transactions with employees, customers, and suppliers were conducted.

Determining the type of bacteria : Dr. James isolated Staphylococcus aureus, a type of bacteria, from the leg wound of a ten year old boy. He suspected these bacteria would grow better

User Account

All Pages